Higher Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in two straight sessions, collecting almost 20 points or 0.3 percent along the way. The Jakarta Composite Index now sits just above the 7,135-point plateau and it's expected to open to the upside again on Tuesday. The global forecast for the Asian markets is upbeat on renewed optimism over the outlook for interest rates. The European and U.S. markets were firmly higher and the Asian markets are predicted to open in similar fashion. The JCI finished barely higher on Monday following gains from the resource stocks and a mixed picture from the financial sector. For the day, the index perked 1.17 points or 0.02 percent to finish at 7,135.89 after trading between 7,102.69 and 7,178.77. Among the actives, Bank CIMB Niaga slumped 1.37 percent, while Bank Mandiri jumped 2.03 percent, Bank Danamon Indonesia skidded 1.11 percent, Bank Negara Indonesia fell 0.41 percent, Bank Central Asia shed 0.51 percent, Bank Rakyat Indonesia collected 0.84 percent, Indosat Ooredoo Hutchison advanced 0.94 percent, Indocement skidded 1.04 percent, Semen Indonesia rallied 1.51 percent, United Tractors perked 0.08 percent, Astra International tanked 2.39 percent, Energi Mega Persada dropped 0.97 percent, Aneka Tambang strengthened 1.68 percent, Vale Indonesia soared 5.41 percent, Timah surged 3.45 percent, Bumi Resources spike 3.00 percent and Astra Agro Lestari and Indofood Sukses Makmur were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Monday and remained firmly in the green throughout the trading day.

The Dow advanced 176.59 points or 0.46 percent to finish at 38,852.27, while the NASDAQ rallied 192.92 points or 1.19 percent to close at 16,349.25 and the S&P 500 improved 52.95 points or 1.03 percent to end at 5,180.74.

Stocks continued to benefit from the upward momentum seen over the two previous sessions, which partly reflected renewed optimism about the outlook for interest rates.

Relatively dovish comments from Federal Reserve Chair Jerome Powell combined with weaker-than-expected job growth in April have largely eliminated short-lived concerns the Fed might actually consider raising rates.

Investors have instead grown increasingly confident about a rate cut in the coming months, with the chances rates will be lower by September now at 83.5 percent, according to CME Group's FedWatch Tool.

Crude oil futures settled modestly higher on Monday following Saudi Arabia's decision to hike its selling price for the European and Asian markets. West Texas Intermediate Crude oil futures for June ended higher by $0.37 or 0.47 percent at $78.48 a barrel.