Indonesia Bourse May Give Up Support At 7,200 Points

(RTTNews) - Ahead of Wednesday's Labor Day holiday, the Indonesia stock market had moved higher in two straight sessions, collecting almost 200 points or 2.9 percent along the way. The Jakarta Composite Index now sits just above the 7,230-point plateau although it may head south on Thursday.

The global forecast for the Asian markets is soft following the Federal Reserve's rate decision and statement. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

For the day, the index climbed 78.41 points or 1.10 percent to finish at 7,234.20 after trading between 7,179.69 and 7,266.87.

Among the actives, Bank CIMB Niaga soared 3.80 percent, while Bank Mandiri fell 0.36 percent, Bank Danamon Indonesia rallied 2.24 percent, Bank Negara Indonesia collected 0.48 percent, Bank Rakyat Indonesia surged 3.56 percent, Indosat Ooredoo Hutchison tumbled 1.79 percent, Indocement improved 1.64 percent, Semen Indonesia climbed 1.08 percent, Indofood Sukses Makmur increased 1.21 percent, United Tractors dipped 0.20 percent, Astra International accelerated 2.49 percent, Energi Mega Persada dropped 0.96 percent, Astra Agro Lestari jumped 1.96 percent, Aneka Tambang strengthened 1.55 percent, Vale Indonesia advanced 1.67 percent, Timah spiked 2.82 percent, Bumi Resources skidded 1.00 percent and Bank Central Asia was unchanged.

The lead from Wall Street offers little guidance as the major averages were flat on Wednesday until a spike following the Federal Reserve's monetary policy announcement. It faded quickly, however, and the markets finished mixed and little changed.

The Dow gained 87.37 points or 0.23 percent to finish at 37,903.29, while the NASDAQ slumped 52.34 points or 0.33 percent to end at 15,605.48 and the S&P 500 lost 17.30 points or 0.34 percent to close at 5,018.39.

The late-day volatility came after the Fed announced its widely expected decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective.

Members of the Fed also reiterated they need greater confidence inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

On the economic data front, payroll processor ADP released a report showing private sector employment increased by more than expected in the month of April.

Oil prices fell to a seven-week low on Wednesday after data showed an unexpected sharp jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93 at $79.00 a barrel, the lowest settlement since March 12.

Closer to home, Indonesia will provide April figures for consumer prices later today; in March, overall inflation was up 0.52 percent on month and 3.05 percent on year, while core CPI climbed an annual 1.77 percent.