Indonesia Stock Market Due For Support On Thursday

(RTTNews) - Ahead of Wednesday's holiday for the Islamic New Year, the Indonesia stock market had moved lower in two straight sessions, sinking almost 40 points or 0.4 percent along the way. The Jakarta Composite Index now sits just above the 6,830-point plateau although it's expected to move higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic because of an improving outlook for interest rates. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The JCI finished modestly lower on Wednesday following weakness from the financial shares and the resource stocks.

For the day, the index slid 36.94 points or 0.54 percent to finish at 6,830.20.

Among the actives, Bank CIMB Niaga dropped 0.94 percent, while Bank Mandiri shed 0.47 percent, Bank Danamon Indonesia lost 0.64 percent, Bank Negara Indonesia sank 0.56 percent, Bank Central Asia fell 0.27 percent, Bank Rakyat Indonesia jumped 1.81 percent, Indosat Ooredoo Hutchison skidded 1.11 percent, Indofood Suskes gained 0.68 percent, United Tractors perked 0.10 percent, Astra International retreated 1.50 percent, Energi Mega Persada rallied 2.70 percent, Astra Agro Lestari slid 0.32 percent, Vale Indonesia rose 0.39 percent and Timah, Bumi Resources, Aneka Tambang, Indocement and Semen Indonesia were unchanged.

The lead from Wall Street suggests mild upside as the major averages opened firmly higher on Wednesday but faded as the day progressed, finishing with only slight gains.

The Dow climbed 109.31 points or 0.31 percent to finish at 35,061.21, while the NASDAQ rose 4.42 points or 0.03 percent to close at 14,358.02 and the S&P 500 perked 10.74 points or 0.24 percent to end at 4,565.72.

The strength on Wall Street extended the current upward trend, with the Dow closing higher for the eighth consecutive session. Encouraging inflation data helped trigger the recent advance, as traders grow increasingly optimistic the Federal Reserve is nearing the end of its interest rate hikes.

Upbeat earnings news has added to the positive sentiment, with regional banks U.S. Bancorp (USB), Ally Financial (ALLY) and Citizens Financial (CFG) posting standout gains after reporting better than expected quarterly earnings.

Meanwhile, traders shrugged off a Commerce Department report showing a sharp pullback in housing starts last month.

Oil futures pared early gains and settled lower on Wednesday after data showed a smaller-than-expected drop in U.S. crude inventories last week, while a stronger dollar weighed as well. West Texas Intermediate Crude oil futures for August fell $0.40 or 0.5 percent at $75.35 a barrel.

Closer to home, Indonesia will see June data for retail sales later today; in May, sales were down 4.5 percent on year.