Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in two straight sessions, gathering more than 95 points or 1.3 percent along the way. The Jakarta Composite Index now sits just above the 6,830-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is mixed to lower, with tech shares likely to weigh after disappointing earnings. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished modestly higher on Wednesday following gains from the financials, weakness from the resource stocks and a mixed bag from the cement companies.

For the day, the index gained 27.63 points or 0.41 percent to finish at 6,834.39 after trading between 6,821.08 and 6,878.56.

Among the actives, Bank CIMB Niaga rallied 2.41 percent, while Bank Mandiri jumped 1.74 percent, Bank Danamon Indonesia strengthened 1.52 percent, Bank Negara Indonesia lost 0.60 percent, Bank Central Asia rallied 1.14 percent, Bank Rakyat Indonesia improved 1.47 percent, Indosat Ooredoo Hutchison tanked 2.34 percent, Indocement fell 0.26 percent, Semen Indonesia climbed 1.19 percent, Indofood Suskes added 0.37 percent, United Tractors surged 4.26 percent, Astra International shed 0.43 percent, Energi Mega Persada dropped 0.83 percent, Astra Agro Lestari skidded 1.06 percent, Aneka Tambang tumbled 1.98 percent, Vale Indonesia plunged 2.64 percent, Timah sank 0.71 percent and Bumi Resources was unchanged.

The lead from Wall Street is broadly negative as the major averages opened mixed on Wednesday but quickly headed south and finished near session lows.

The Dow dropped 105.45 points or 0.32 percent to finish at 33,035.93, while the NASDAQ plunged 318,65 points or 2.43 percent to close at 12,821,22 and the S&P 500 sank 60.91 points or 1.43 percent to end at 4,186.77.

The particularly steep drop by the NASDAQ reflected a negative reaction to quarterly results from Alphabet (GOOGL), with the Google parent plunging 9.5 percent after the company reported Q3 earnings that beat estimates but had weaker than expected revenue from its cloud business.

A renewed increase by treasury yields also weighed on the markets, with the yield on the benchmark 10-year note spiking after ending the previous session little changed.

The surge by yields came as traders looked ahead to key economic data in the coming days, including a preliminary reading on third quarter GDP on Thursday and personal income on Friday.

Oil futures settled higher on Wednesday, snapping a three-day losing streak amid likely disruptions in supply due to the tensions in the Middle East. West Texas Intermediate Crude oil futures for November ended higher by $1.65 or 1.97 percent at $85.39 a barrel.