Indonesia Bourse May Extend Tuesday's Gains

(RTTNews) - The Indonesia stock market on Tuesday snapped the two-day slide in which it had given up almost 80 points or 1.3 percent. The Jakarta Composite Index now sits just beneath the 6,200-point plateau and it's expected to open to the upside again on Wednesday.

The global forecast for the Asian markets is mildly positive on hopes for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished sharply higher on Tuesday following gains from the financial shares and cement companies, while the food and telecom stocks were weak and the resource sector was mixed.

For the day, the index climbed 68.05 points or 1.11 percent to finish at 6,195.43 after trading between 6,143.62 and 6,264.26.

Among the actives, Bank Mandiri jumped 2.21 percent, while Bank Danamon Indonesia skidded 1.07 percent, Bank Negara Indonesia strengthened 1.62 percent, Bank Central Asia collected 2.19 percent, Bank Rakyat Indonesia spiked 3.05 percent, Indosat Ooredoo Hutchison retreated 1.39 percent, Indocement expanded 1.43 percent, Semen Indonesia accelerated 4.44 percent, Indofood Sukses Makmur plunged 5.05 percent, United Tractors tumbled 1.85 percent, Astra International tanked 2.00 percent, Energi Mega Persada soared 5.93 percent, Astra Agro Lestari surged 5.41 percent, Aneka Tambang vaulted 2.07 percent, Timah stumbled 1.87 percent, Bumi Resources cratered 4.17 percent and Bank CIMB Niaga and Vale Indonesia were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages were able to shake off early weakness and find modest gains on Tuesday, with all three hitting record closing highs for the third day in a row.

The Dow added 228.91 points or 0.45 percent to finish at 51,307.79, while the NASDAQ rose 7.09 points or 003 percent to close at 27,093.90 and the S&P 500 added 9.86 points or 0.13 percent to end at 7,609.82.

Stocks had benefitted from optimism for an end to the U.S.-Iran conflict in the past few sessions, but differing accounts from U.S. President Donald Trump and the Israelian Prime Minister Benjamin Netanyahu dampened hopes. A rebound by the price of crude oil also limited the upside.

Crude oil prices jumped on Tuesday as the U.S.-Iran Memorandum of Understanding has been delayed. Also, global energy watchdogs warn of accelerating crude oil inventory depletion. West Texas Intermediate crude for July was up $1.57 or 1.70 percent at $93.73 per barrel.

While uncertainty about the situation in the Middle East has kept some traders on the sidelines, optimism about the AI trade continues to generate positive sentiment on Wall Street.