Indonesia Bourse May Give Up Support At 7,600 Points

(RTTNews) - The Indonesia stock market on Tuesday snapped the two-day winning streak in which it had advanced almost 70 points or 0.9 percent. The Jakarta Composite Index now sits just above the 7,615-point plateau and it's expected to open in the red again on Wednesday.

The global forecast for the Asian markets is broadly negative on concerns over the global economy. The European and U.S. markets were sharply lower and the Asian bourses are tipped to follow suit.

The JCI finished sharply lower on Tuesday following losses from the financial, cement and telecom sectors, although support from the resource stocks limited the downside.

For the day, the index slumped 78.01 points or 1.01 percent to finish at 7,616.52 after trading between 7,598.47 and 7,726.66.

Among the actives, Bank CIMB Niaga sank 0.79 percent, while Bank Mandiri stumbled 1.74 percent, Bank Danamon Indonesia slipped 0.38 percent, Bank Negara Indonesia collected 0.47 percent, Bank Central Asia and Indosat Ooredoo Hutchison both dropped 0.97 percent, Bank Maybank Indonesia slumped 0.84 percent, Indocement shed 0.71 percent, Semen Indonesia declined 1.47 percent, Indofood Sukses Makmur improved 0.74 percent, United Tractors lost 0.45 percent, Astra International retreated 1.44 percent, Energi Mega Persada rallied 3.00 percent, Astra Agro Lestari fell 0.41 percent, Aneka Tambang tumbled 1.79 percent, Jasa Marga weakened 0.47 percent, Vale Indonesia skidded 1.32 percent, Timah added 0.50 percent, Bumi Resources surged 5.38 percent and Bank Rakyat Indonesia was unchanged.

The lead from Wall Street is brutal as the major averages opened firmly in the red and only got worse as the day progressed.

The Dow plunged 626.15 points or 1.51 percent to finish at 40,836.93, while the NASDAQ plummeted 577.33 points or 3.26 percent to close at 17,136.30 and the S&P 500 tumbled 119.47 points or 2.12 percent to end at 5,528.93.

The sell-off on Wall Street came after the Institute for Supply Management noted continued decline by U.S. manufacturing activity in August. A separate report from the Commerce Department unexpectedly showed a modest decrease by U.S. construction spending in July.

The weakness on Wall Street also came as some traders look to cash in on the previous session's gains amid lingering uncertainty about the outlook for interest rates.

The Federal Reserve is almost universally expected to lower rates at its next meeting later this month, but there is some disagreement about the pace of rate cuts. According to CME Group's FedWatch Tool, there is a 63.0 percent chance of a quarter-point rate cut later this month and a 37.0 percent chance of a half-point rate cut.

Oil prices fell sharply to a nine-month low on Tuesday on prospects of oversupply from OPEC weighed on oil prices. West Texas Intermediate Crude oil futures for October ended down by $3.21 or 4.4 percent at $70.34 a barrel.