Renewed Support Expected For Indonesia Shares

(RTTNews) - The Indonesia stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had gained almost 60 points or 0.78 percent. The Jakarta Composite Index now sits just above the 8,520-point plateau although it may bounce higher again on Wednesday.

The global forecast for the Asian markets is positive on an improved 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 modestly lower on Tuesday following losses from the food and cement sectors, while the financials were mixed and the resource stocks provided support.

For the day, the index sank 48.37 points or 0.56 percent to finish at 8,521.88 after trading between 8,487.22 and 8,574.38.

Among the actives, Bank CIMB Niaga collected 0.28 percent, while Bank Mandiri retreated 1.47 percent, Bank Danamon Indonesia added 0.40 percent, Bank Negara Indonesia gained 0.68 percent, Bank Central Asia rose 0.29 percent, Bank Rakyat Indonesia stumbled 3.77 percent, Indosat Ooredoo Hutchison rallied 4.15 percent, Indocement contracted 1.87 percent, Semen Indonesia tanked 2.67 percent, Indofood Sukses Makmur tumbled 2.68 percent, United Tractors gathered 0.27 percent, Astra International fell 0.39 percent, Energi Mega Persada surrendered 1.97 percent, Aneka Tambang jumped 2.39 percent, Vale Indonesia sank 0.78 percent, Timah surged 6.67 percent, Bumi Resources skyrocketed 8.26 percent and Astra Agro Lestari was unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Tuesday but then trended to the upside throughout the session, ending near daily highs.

The Dow surged 664.18 points or 1.43 percent to finish at 47,112.45, while the NASDAQ added 153.59 points or 0.67 percent to end at 23,025.59 and the S&P 500 climbed 60.76 points or 0.91 percent to close at 6,765.88.

The strength that emerged on Wall Street reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department said retail sales in the U.S. increased less than expected in September, while the Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in November.

Payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Crude oil prices slumped on Tuesday on reports that a revised Russia-Ukraine peace plan has been accepted by Ukraine. West Texas Intermediate crude for January delivery was down $0.96 or 1.61 percent at $57.89 per barrel.