Higher Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Monday wrote a finish to the two-day losing streak in which it had slumped more than 70 points or 1 percent. The Jakarta Composite Index now sits just above the 6,960-point plateau and it's predicted to move to the upside again on Tuesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates and support from technology stocks. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The JCI finished modestly higher on Monday following gains from the cement stocks and mixed performances from the financials and resource companies.

For the day, the index gained 38.61 points or 0.56 percent to finish at 6,963.39.

Among the actives, Bank CIMB Niaga dropped 0.88 percent, while Bank Danamon tumbled 1.71 percent, Bank Negara advanced 0.80 percent, Bank Mandiri collected 0.42 percent, Bank Rankyat Indonesia strengthened 1.40 percent, Astra International fell 0.39 percent, Aneka Tambang added 0.51 percent, Astra Agro Lestari rose 0.34 percent, Indocement jumped 1.85 percent, Semen Indonesia spiked 2.53 percent, United Tractors retreated 1.47 percent, Indofood gained 0.36 percent, Energy Mega Persada rallied 4.48 percent, Kalbe Farma skyrocketed 8.14 percent, Timah lost 0.56 percent, Bumi Resources tanked 2.08 percent and Bank Central Asia, Indosat Ooredoo Hutchison, Vale Indonesia and Perusahaan Gas Negara were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained in the green throughout the trading day.

The Dow advanced 87.13 points or 0.25 percent to finish at 34,663.72, while the NASDAQ spiked 156.37 points or 1.14 percent to close at 13,917.89 and the S&P 500 gained 29.97 points or 0.67 percent to end at 4,487.46.

The tech-heavy NASDAQ received a boost from a surge by shares of Tesla (TSLA), with the electric car maker spiking by 10.1 percent after Morgan Stanley upgraded its rating on the company's stock to Overweight from Equal-Weight.

The overall strength on Wall Street partly reflected easing concerns about the outlook for interest rates after reports suggested a shift in Federal Reserve officials' stance on rates.

CME Group's FedWatch Tool is currently indicating a 93.0 chance the Fed will leave interest rates unchanged next week. The outlook for November is a little more uncertain, however, with the FedWatch Tool indicating a 54.5 percent chance rates will remain unchanged and a 42.6 percent chance of another quarter point rate hike.

Crude oil prices fell on Monday, retreating from last week's 10-month highs on concerns about the outlook for energy demand from China. West Texas Intermediate Crude oil futures for October ended lower by $0.22 or 0.3 percent at $87.29 a barrel.