Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in consecutive trading days, advancing more than 35 points or 0.5 percent along the way. The Jakarta Composite Index now sits just above the 6,915-point plateau although it may run out of steam on Wednesday.

The global forecast for the Asian markets is soft on concerns about economic outlook and expectations for interest rates. The Eruopean and U.S. markets were solidly lower and the Asian markets are expected to follow suit.

The JCI finished barely higher on Tuesday following mixed performances from the financial shares and resource stocks.

For the day, the index rose 4.93 points or 0.07 percent to finish at 6,915.10.

Among the actives, Bank Mandiri tanked 2.52 percent, while Bank Danamon Indonesia collected 0.33 percent, Bank Negara Indonesia dropped 1.09 percent, Bank Central Asia shed 0.53 percent, Bank Rakyat Indonesia declined 1.33 percent, Indosat Ooredoo Hutchison surged 4.07 percent, Indocement slid 0.44 percent, Indofood Suskes sank 0.71 percent, United Tractors dipped 0.27 percent, Astra International skidded 1.10 percent, Energi Mega Persada retreated 1.63 percent, Astra Agro Lestari fell 0.32 percent, Aneka Tambang lost 0.50 percent, Vale Indonesia slumped 0.39 percent, Timah jumped 1.67 percent, Bumi Resources spiked 2.19 percent and Bank CIMB Niaga and Semen Indonesia were unchanged.

The lead from Wall Street is weak as the major averages opened sharply lower on Tuesday and remained in the red throughout the trading day.

The Dow tumbled 361.24 points or 1.02 percent to finish at 34,946.39, while the NASDAQ slumped 157.28 points or 1.14 percent to close at 13,631.05 and the S&P 500 sank 51.86 points or 1.16 percent to end at 4,437.86.

Worries about the health of the Chinese economy, and concerns that the Federal Reserve will hold interest rates higher for a longer time to contain inflation weigh on sentiment.

A warning from Fitch that it may have to downgrade credit ratings of several banks, including JP Morgan, is hurting as well.

Oil prices fell sharply Tuesday on concerns about the outlook for energy demand following a batch of weak economic data from China. West Texas Intermediate Crude oil futures for September sank $1.52 or 1.8 percent at $80.99 a barrel.