Indonesia Shares Tipped To Bounce Higher Again On Tuesday

(RTTNews) - The Indonesia stock market on Monday ended the three-day winning streak in which it had collected more than 100 points or 1.3 percent. The Jakarta Composite Index now sits just above the 7,700-point plateau although it figures to see renewed support on Tuesday. The global forecast for the Asian markets is positive on anticipated bargain hunting and on the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are tipped to open in similar fashion. The JCI finished slightly lower on Monday following losses from the resource stocks and mixed performances from the financial shares and cement companies. For the day, the index dipped 19.11 points or 0.25 percent to finish at 7,702.74 after trading between 7,654.73 and 7,748.33. Among the actives, Bank CIMB Niaga slid 0.26 percent, while Bank Danamon Indonesia fell 0.38 percent, Bank Negara Indonesia rallied 1.33 percent, Bank Central Asia dipped 0.24 percent, Bank Rakyat Indonesia dropped 0.96 percent, Bank Maybank Indonesia collected 0.87 percent, Indocement and United Tractors both improved 0.74 percent, Semen Indonesia and Astra International both shed 0.50 percent, Indofood Sukses Makmur retreated 1.42 percent, Energi Mega Persada tumbled 1.96 percent, Astra Agro Lestari tanked 2.64 percent, Aneka Tambang slumped 1.12 percent, Jasa Marga plunged 3.35 percent, Vale Indonesia sank 0.82 percent, Timah surrendered 3.00 percent, Bumi Resources skidded 1.02 percent and Bank Mandiri and Indosat Ooredoo Hutchison were unchanged. The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained well in the green throughout the trading day.

The Dow surged 484.18 points or 1.20 percent to finish at 40,829.59, while the NASDAQ rallied 193.77 points or 1.16 percent to close at 16,884.60 and the S&P 500 climbed 62.63 points or 1.16 percent to end at 5,471.05.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop seen last week, which dragged the NASDAQ down to its lowest levels in nearly a month.

Optimism the Federal Reserve will lower interest rates later this month has also contributed to the strength on Wall Street, despite lingering concerns about the outlook for the U.S. economy.

CME Group's FedWatch Tool is currently indicating a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50 basis point rate cut.

Oil prices climbed higher Monday on the possibility of weather-related production issues in the the Gulf of Mexico, and on OPEC's decision to delay a production boost originally scheduled to begin in October. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.54 percent at $68.71 a barrel. Closer to home, Indonesia will release July data for retail sales later today; in June, sales were up an annual 2.7 percent.