Indonesia Bourse May Test Resistance At 7,800 Points

(RTTNews) - The Indonesia stock market has moved higher in back-to-back sessions, gathering more than 35 points or 0.5 percent along the way. The Jakarta Composite Index now rests just above the 7,775-point plateau and it's expected to open in the green again on Wednesday.

The global forecast for the Asian markets is positive on continued optimism over the outlook for interest rates. The European and U.S. markets saw mild upside and the Asian bourses figure to open in similar fashion, although some of the more oversold markets may correct to the downside.

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

For the day, the index perked 2.76 points or 0.04 percent to finish at 7,778.49 after trading between 7,717.84 and 7,810.54.

Among the actives, Bank CIMB Niaga rose 0.25 percent, while Bank Mandiri fell 0.34 percent, Bank Danamon Indonesia and Indocement both shed 0.37 percent, Bank Central Asia retreated 1.37 percent, Bank Rakyat Indonesia collected 0.45 percent, Bank Maybank Indonesia improved 0.85 percent, Indosat Ooredoo Hutchison perked 0.23 percent, Semen Indonesia slipped 0.26 percent, Indofood Sukses Makmur climbed 1.06 percent, United Tractors increased 0.92 percent, Astra International advanced 0.96 percent, Energi Mega Persada tumbled 1.82 percent, Aneka Tambang gained 1.08 percent, Jasa Marga dipped 0.20 percent, Vale Indonesia rallied 1.07 percent, Timah soared 2.39 percent, Bumi Resources stumbled 1.61 percent and Astra Agro Lestari and Bank Negara Indonesia were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened slightly higher on Tuesday, bounced back and forth across the line and finally ended mixed and little changed.

The Dow added 83.57 points or 0.20 percent to finish at 42,208.22, while the NASDAQ gained 100.25 points or 0.56 percent to end at 18,074.52 and the S&P 500 rose 14.36 points or 0.25 percent to close at 5,732.93.

The strength that emerged on Wall Street came on continued optimism for more rate cuts from the Federal Reserve in the coming months.

The upside was limited by concerns for the economy after the Conference Board reported a notable deterioration in U.S. consumer confidence in September.

Oil prices rallied on Tuesday as concerns about the outlook for demand eased after the Chinese central bank announced a slew of stimulus measures to boost the nation's economy. An escalation in tensions in the Middle East, and reports of a new storm in Gulf of Mexico also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures ended up by $1.19 or about 1.7 percent at $71.56 a barrel.