Renewed Selling Pressure Expected For Indonesia Stock Market

(RTTNews) - The Indonesia stock market bounced higher again on Tuesday, one session after ending the three-day winning streak in which it had gained almost 85 points or 1.4 percent. The Jakarta Composite Index now rests just beneath the 7,325-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is negative, with technology and oil stocks likely to lead the way lower. The European and U.S. markets were mostly in the red and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Tuesday following gains from the financial shares, resource stocks and energy producers.

For the day, the index advanced 50.79 points or 0.70 percent to finish at the daily high of 7,323.59 after moving as low as 7,245.57.

Among the actives, Bank CIMB Niaga added 0.59 percent, while Bank Mandiri improved 1.24 percent, Bank Central Asia and Indocement both rose 0.27 percent, Bank Rakyat Indonesia collected 0.60 percent, Semen Indonesia rallied 1.17 percent, United Tractors soared 3.76 percent, Astra International advanced 0.88 percent, Energi Mega Persada surged 3.64 percent, Indika Energy spiked 6.27 percent, Astra Agro Lestari climbed 1.07 percent, Aneka Tambang jumped 1.76 percent, Vale Indonesia accelerated 2.55 percent, Timah jumped 2.33 percent, Bumi Resources skyrocketed 11.76 percent and Bank Danamon Indonesia, Indosat Ooredoo Hutchison, Indofood Suskes and Bank Negara Indonesia were unchanged.

The lead from Wall Street is soft as the major averaged opened lower on Tuesday and only the Dow was able to peek barely into positive territory by the session's end.

The Dow rose 25.50 points or 0.07 percent to finish at 37,715.04, while the NASDAQ tumbled 245.41 points or 1.63 percent to end at 14,765.94 and the S&P 500 sank 27.00 points or 0.57 percent to close at 4,742.83.

The weakness in the broader markets came as traders continued to cash in on recent strength, particularly among technology stocks.

A steep drop by shares of Apple (AAPL) weighed on the tech sector, with the iPhone maker tumbling by 3.6 percent to its lowest closing level in well over a month after Barclays downgraded its rating on the company's stock to Underweight from Equal Weight.

The price of crude oil couldn't hold early gains and showed a substantial downturn on Tuesday over escalating Middle East tensions. West Texas Intermediate crude for February delivery surged nearly $2 to a high of $73.64 a barrel early in the session but pulled back sharply to close down $1.27 or 1.8 percent at $70.38 a barrel.