(RTTNews) – The Indonesia stock market on Wednesday snapped the three-day slide in which it had dropped more than 150 points or 2.2 percent. The Jakarta Composite Index now rests just beneath the 7,070-point plateau and it’s expected to open to the upside again on Thursday.
The global forecast for the Asian markets is slightly positive on a slightly improved outlook for interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.
The JCI finished modestly higher on Wednesday as big gains from the food and resource stocks were dented by weakness from the financial shares and cement companies.
For the day, the index collected 24.22 points or 0.34 percent to finish at 7,069.04 after trading between 7,052.91 and 7,094.45.
Among the actives, Bank CIMB Niaga collected 0.58 percent, while Bank Mandiri shed 0.50 percent, Bank Danamon Indonesia fell 0.41 percent, Bank Negara Indonesia retreated 1.60 percent, Bank Central Asia sank 0.83 percent, Bank Rakyat Indonesia tanked 2.86 percent, Indosat Ooredoo Hutchison lost 0.48 percent, Indocement plunged 3.32 percent, Semen Indonesia declined 1.41 percent, Indofood Sukses Makmur surged 5.11 percent, Astra International tumbled 1.91 percent, Energi Mega Persada skyrocketed 10.28 percent, Astra Agro Lestari added 0.42 percent, Aneka Tambang soared 5.65 percent, Vale Indonesia rallied 7.80 percent, Timah accelerated 5.24 percent, Bumi Resources jumped 1.69 percent and United Tractors was unchanged.
The lead from Wall Street is uninspired as the major averages opened higher on Wednesday but gave back almost off of their gains to finish mixed and flat.
The Dow dropped 91.90 points or 0.22 percent to finish at 42,427.74, while the NASDAQ gained 61.53 points or 0.32 percent to close at 19,460.49 and the S&P 500 perked 0.44 points or 0.01 percent to end at 5,970.81.
The lackluster performance followed the release of some weaker than expected U.S. economic data. While the data raised concerns about the strength of the economy, it also generated some optimism about the outlook for interest rates.
In economic news, payroll processor ADP reported much weaker than expected private sector job growth in May. Also, the Institute for Supply Management said service sector activity in the U.S. unexpectedly contracted in May.
However, the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, with CME Group’s FedWatch Tool currently indicating a 95.6 percent chance the central bank will leave rates unchanged.
Crude oil futures moved to the downside during trading on Wednesday, reflecting easing supply concerns as rains slowed the growth of blazes that had disrupted Canadian crude production. West Texas Intermediate crude for July delivery fell $0.56 or 0 .9 percent to $62.85 a barrel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
