Indonesia Stock Market Tipped To Rebound On Thursday

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day losing streak in which it had stumbled more than 180 points or 2.6 percent. The Jakarta Composite Index now sits just above the 7,020-point plateau and it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat following a drop in U.S. treasury yields. The European markets were mixed and the U.S bourses were slightly higher and the Asian markets figure to split the difference.

The JCI finished modestly lower on Wednesday as losses from the food, finance and cement sectors were mitigated by support from the resource stocks.

For the day, the index sank 49.23 points or 0.70 percent to finish at 7,024.23 after trading between 7,002.52 and 7,079.46.

Among the actives, Bank Mandiri tanked 2.64 percent, while Bank Danamon Indonesia skidded 1.18 percent, Bank Negara Indonesia plunged 4.26 percent, Bank Central Asia shed 0.54 percent, Bank Rakyat Indonesia stumbled 2.82 percent, Bank Maybank Indonesia collected 1.00 percent, Indosat Ooredoo Hutchison dropped 0.89 percent, Indocement retreated 1.75 percent, Indofood Sukses Makmur surrendered 2.27 percent, United Tractors added 0.60 percent, Astra International slumped 1.25 percent, Energi Mega Persada sank 0.97 percent, Astra Agro Lestari lost 0.86 percent, Aneka Tambang rallied 3.57 percent, Jasa Marga gained 0.48 percent, Vale Indonesia improved 0.71 percent, Timah jumped 1.56 percent and Bumi Resources, Bank CIMB Niaga and Semen Indonesia were unchanged.

The lead from Wall Street is positive after the major averages opened lower on Wednesday but turned higher into the green as the day progressed, ending at session highs.

The Dow rallied 317.24 points or 0.71 percent to finish at 44,873.28, while the NASDAQ added 38.31 points or 0.19 percent to close at 19,692.33 and the S&P 500 gained 23.60 points or 0.39 percent to end at 6,061.48.

The rebound on Wall Street came amid a notable move to the downside by treasury yields, with the yield on the benchmark ten-year note slumping to its lowest closing level in well over a month.

Yields tumbled after the Treasury Department said its current auction sizes leave it well positioned to address potential changes to the fiscal outlook. Based on projected borrowing needs, the Treasury anticipates maintaining long-term securities auction sizes for at least the next several quarters.

In economic news, the Institute for Supply Management said service sector growth in the U.S. unexpectedly slowed modestly in January. Also, payroll processor ADP said private sector employment in the U.S. increased more than expected last month.

Oil prices settled sharply lower Wednesday after data showed a sharp jump in U.S. crude inventories last week. Concerns about the outlook for oil demand also weighed on prices. West Texas Intermediate Crude oil futures for March settled at $71.03 a barrel, losing $1.67 or 2.29 percent.