Indonesia Shares Likely To Open In The Red

(RTTNews) - The Indonesia stock market has finished higher in two of three trading days since the end of the three-day slide in which it had retreated almost 200 points or 2.9 percent. The Jakarta Composite Index now rests just above the 7,050-point plateau although it's expected to turn lower again on Friday.

The global forecast for the Asian markets suggests further consolidation on worldwide recession fears. The European and U.S. markets finished with deep losses and the Asian bourse are also tipped to open in the red.

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

For the day, the index collected 43.28 points or 0.62 percent to finish at 7,050.33 after trading between 7,025.93 and 7,138.50.

Among the actives, Bank Danamon Indonesia jumped 1.70 percent, while Bank CIMB Niaga strengthened 1.49 percent, Bank Negara Indonesia fell 0.30 percent, Bank Central Asia soared 3.41 percent, Bank Mandiri collected 0.90 percent, Bank Rakyat Indonesia lost 0.45 percent, Indosat rallied 2.61 percent, Indocement climbed 1.10 percent, United Tractors advanced 0.84 percent, Astra International improved 2.24 percent, Energi Mega Persada added 0.68 percent, Bakrie Sumatera Plantations plunged 3.28 percent, Astra Agro Lestari tanked 2.40 percent, Aneka Tambang dropped 0.92 percent, Vale Indonesia spiked 2.53 percent, Timah retreated 1.65 percent, Bumi Resources surged 3.45 percent and Semen Indonesia and Indofood Suskes were unchanged.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Thursday and remained deep in the red throughout the day, finishing near session lows.

The Dow plummeted 741.46 points or 2.42 percent to finish at 29,927.07, while the NASDAQ plunged 453.06 points or 4.08 percent to close at 10,646.10 and the S&P 500 dropped 123.22 points or 3.25 percent to end at 3,666.77.

The sell-off on Wall Street reflected concerns aggressive monetary policy action by central banks around the world may trigger a global recession.

Following the Federal Reserve's widely expected 75 basis point interest rate hike on Wednesday, central banks in Switzerland, England and Taiwan, among others, also decided to hike rates.

In economic news, the Labor Department noted a modest decrease in first-time claims for U.S. jobless benefits last week. Also, the Commerce Department said new residential construction in the U.S. plunged more than expected May.

Oil futures settled higher on Thursday after prices rebounded as tight supply levels outweighed concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for July ended higher by $2.27 or 2 percent at $117.58 a barrel.