Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in back-to-back sessions, advancing more than 45 points or 0.6 percent along the way. The Jakarta Composite Index now sits just beneath the 7,330-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is one of caution ahead of key U.S. inflation data later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The JCI finished modestly higher on Wednesday following gains from the financial shares and food companies, while the resource stocks were mixed.

For the day, the index added 43.32 points or 0.59 percent to finish at 7,328.64 after trading between 7,289.26 and 7,328.74.

Among the actives, Bank CIMB Niaga tumbled 1.89 percent, while Bank Mandiri collected 0.71 percent, Bank Danamon Indonesia rose 0.34 percent, Bank Negara Indonesia shed 0.42 percent, Bank Central Asia strengthened 1.27 percent, Bank Rakyat Indonesia jumped 1.63 percent, Indosat Ooredoo Hutchison surged 4.93 percent, Indocement perked 0.28 percent, Indofood Suskes improved 0.76 percent, Astra International advanced 0.97 percent, Energi Mega Persada retreated 1.49 percent, Aneka Tambang added 0.68 percent, Vale Indonesia rallied 2.01 percent, Timah climbed 0.88 percent, Bumi Resources slumped 1.12 percent and Semen Indonesia, United Tractors and Astra Agro Lestari were unchanged.

The lead from Wall Street is weak as the major averages opened sharply lower on Wednesday, pared their losses as the day progressed but still ended in the red.

The Dow shed 23.39 points or 0.06 percent to finish at 38,949.02, while the NASDAQ dropped 87.56 points or 0.55 percent and the S&P 500 sank 8.42 points or 0.17 percent to end at 5,069.76.

The early weakness on Wall Street came as traders looked to cash in on the recent strength in the markets ahead of the release of closely watched readings on consumer price inflation later today.

With Federal Reserve officials saying they need greater confidence inflation is slowing before they consider cutting interest rates, the data could have a significant impact on the outlook for rates.

In economic news, the Commerce Department said the jump by real gross domestic product in the fourth quarter was downwardly revised to 3.2 percent from the previously reported 3.3 percent.

Oil prices fell on Wednesday after data showed a much larger than expected increase in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for April ended down $0.33 or 0.42 percent at $78.54 a barrel.