Strong Open Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 85 points or 1.2 percent. The Jakarta Composite Index now sits just beneath the 6,970-point plateau, although it's expected to bounce firmly higher again on Friday.

The global forecast for the Asian markets is upbeat on encouraging inflation data and an improved outlook for interest rates. The European and U.S. markets were sharply higher and the Asian bourses are tipped to follow suit.

The JCI finished sharply lower on Thursday following losses from the financials and resource stocks, while the cement companies were mixed.

For the day, the index dropped 103.25 points or 1.46 percent to finish at 6,966.84.

Among the actives, Bank Danamon Indonesia slid 0.33 percent, while Bank CIMB Niaga tanked 3.78 percent, Bank Negara Indonesia eased 0.27 percent, Bank Central Asia sank 0.85 percent, Bank Mandiri shed 0.49 percent, Bank Rakyat Indonesia tumbled 2.58 percent, Indosat Ooredoo Hutchison climbed 1.15 percent, Indocement rallied 2.95 percent, Semen Indonesia strengthened 1.27 percent, Indofood Suskes skidded 1.15 percent, United Tractors plummeted 5.16 percent, Astra International fell 0.38 percent, Energi Mega Persada soared 3.17 percent, Astra Agro Lestari plunged 5.75 percent, Vale Indonesia slumped 1.05 percent, Timah retreated 1.40 percent, Bumi Resources improved 1.08 percent and Aneka Tambang was unchanged.

The lead from Wall Street is broadly positive as the major averages saw their best performance in two years, opening sharply higher Thursday and continuing to accelerate as the day progressed, ending near session highs.

The Dow skyrocketed 1,201.43 points or 3.70 percent to finish at 33,715.37, while the NASDAQ exploded for 760.97 points or 7.35 percent to close at 11,114.15 and the S&P 500 surged 207.80 points or 5.54 percent to end at 3,956.37.

The rally on Wall Street followed the release of a report from the Labor Department showing a smaller than expected monthly increase in consumer prices and a bigger than expected slowdown in the annual rate of price growth.

The data suggests the Federal Reserve's efforts to contain inflation are having an effect, reinforcing recent optimism the central bank will slow the pace of interest rate hikes as early as next month.

Crude oil prices climbed higher on Thursday, rebounding after three straight days of losses as the dollar fell on the better than expected U.S. inflation data. West Texas Intermediate Crude oil futures for December ended higher by $0.64 or 0.8 percent at $86.47 a barrel.