Indonesia Stock Market May Reverse Wednesday's Losses

(RTTNews) - The Indonesia stock market on Wednesday ended the two-day winning streak in which it had gathered almost 40 points or 0.6 percent. The Jakarta Composite Index now sits just shy of the 6,815-point plateau, although it's likely to rediscover support on Thursday.

The global forecast for the Asian markets is positive on easing concerns over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished sharply lower on Wednesday following losses from the financial shares and mixed performances from the cement and resource companies.

For the day, the index dropped 75.52 points or 1.10 percent to finish at 6,813.24.

Among the actives, Bank Danamon Indonesia tumbled 2.93 percent, while Bank CIMB Niaga dropped 0.86 percent, Bank Negara Indonesia declined 1.08 percent, Bank Central Asia tanked 2.34 percent, Bank Mandiri collected 0.75 percent, Bank Rakyat Indonesia stumbled 1.65 percent, Indosat Ooredoo Hutchison sank 0.79 percent, Indocement slumped 0.76 percent, Semen Indonesia climbed 1.12 percent, Indofood Suskes strengthened 1.48 percent, United Tractors plummeted 6.76 percent, Astra International rose 0.44 percent, Energi Mega Persada surrendered 4.03 percent, Astra Agro Lestari retreated 1.22 percent, Aneka Tambang rallied 2.50 percent, Vale Indonesia spiked 2.82 percent, Timah improved 1.29 percent and Bumi Resources plunged 6.63 percent.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Wednesday, moved firmly higher midday and ended solidly in the green.

The Dow jumped 133.40 points or 0.40 percent to finish at 33,269.77, while the NASDAQ climbed 71.78 points or 0.69 percent to close at 10,458.76 and the S&P 500 gained 28.83 points or 0.75 percent to end at 3,852.97.

The volatility on the day came as traders awaited and subsequently reacted to the minutes of the Federal Reserve's December monetary policy, which reinforced expectations the central bank is likely to continuing raising interest rates.

The minutes reiterated that officials continue to anticipate that ongoing rate increases would be appropriate - although perhaps slower - to achieve the Fed's dual objectives of maximum employment and price stability.

On the U.S. economic front, the Institute for Supply Management released a report showing U.S. manufacturing activity contracted at a slightly faster rate in the month of December.

Oil prices fell on Wednesday, extending recent losses as worries about energy demand amid rising fears of a global recession continued to weigh on the commodity. West Texas Intermediate Crude oil futures for February ended down $4.09 or 5.3 percent at $72.84 a barrel.