Rebound Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market headed south again on Tuesday, one day after ending the two-day slide in which it had eased almost 50 points or 0.7 percent. The Jakarta Composite Index now sits just beneath the 7,085-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is cautiously optimistic on hopeful signs for the outlook for interest rates. The European markets were mixed and flat and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The JCI finished modestly lower on Tuesday as losses from the cement and resource companies were mitigated by support from the financial shares.

For the day, the index dipped 15.50 points or 0.22 percent to finish at 7,083.76 after trading between 7,071.50 and 7,136.64.

Among the actives, Bank CIMB Niaga rose 0.27 percent, while Bank Danamon Indonesia strengthened 1.52 percent, Bank Negara Indonesia soared 3.14 percent, Bank Central Asia collected 0.26 percent, Bank Rakyat Indonesia gained 1.07 percent, Indosat Ooredoo Hutchison spiked 2.59 percent, Indocement sank 0.75 percent, Semen Indonesia plunged 3.65 percent, Indofood Sukses Makmur climbed 1.23 percent, United Tractors rallied 1.35 percent, Astra International added 0.53 percent, Energi Mega Persada advanced 1.03 percent, Astra Agro Lestari gained 0.41 percent, Vale Indonesia shed 0.44 percent, Timah retreated 1.63 percent, Bumi Resources plummeted 5.00 percent and Bank Mandiri and Aneka Tambang were unchanged.

The lead from Wall Street is positive as the major averages spent most of Tuesday hugging the unchanged line before a late push bumped them firmly into the green.

The Dow climbed 126.60 points or 0.32 percent to finish at 39,558.11, while the NASDAQ rallied 122.94 points or 0.75 percent to close at 16,511.18 and the S&P 500 added 25.26 points or 0.48 percent to end at 5,246.68.

The higher close on Wall Street came as treasury yields moved to the downside after an early advance, with the yield on the benchmark ten-year note falling to its lowest closing level in over a month.

Treasury yields initially moved higher following the release of a Labor Department report showing producer prices in the U.S. increased by more than expected in the month of April.

However, while the report initially generated renewed uncertainty about the outlook for interest rates, some economists pointed to the downward revisions to the March data as a positive sign.

Oil futures settled lower Tuesday as data showing a bigger than expected increase in U.S. producer prices raised concerns that Federal Reserve will keep interest rates higher for a longer period. West Texas Intermediate Crude oil futures for June sank $1.10 or about 1.4 percent at $78.02 a barrel.

Closer to home, Indonesia will see April numbers for imports, exports and trade balance later today. In March, imports were down 12.76 percent on year and exports slumped an annual 4.19 percent for a trade surplus of $4.47 billion.