Indonesia Shares Expected To Remain Rangebound

(RTTNews) - The Indonesia stock market has alternated between positive and negative finishes through the last 10 trading days since the end of the two-day winning streak in which it had picked up almost 110 points or 1.3 percent. The Jakarta Composite Index now sits just beneath the 8,690-point plateau although it's likely to hand back those gains on Wednesday.

The global forecast for the Asian markets offers little clarity, although any lack of general support should be limited by support from the technology shares. The European markets were soft and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The JCI finished modestly higher on Tuesday following gains from the telecoms and mixed performances from the financial, cement and technology sectors.

For the day, the index gained 36.81 points or 0.43 percent to finish at 8,686.47 after trading between 8,611.35 and 8,700.86.

Among the actives, Bank CIMB Niaga fell 0.28 percent, while Bank Mandiri rose 0.20 percent, Bank Negara Indonesia dropped 0.90 percent, Bank Central Asia tanked 2.71 percent, Bank Rakyat Indonesia stumbled 2.38 percent, Indosat Ooredoo Hutchison added 0.42 percent, Indocement surrendered 2.89 percent, Semen Indonesia improved 0.73 percent, United Tractors sank 0.71 percent, Energi Mega Persada jumped 1.41 percent, Astra Agro Lestari tumbled 2.00 percent, Aneka Tambang plunged 1.98 percent, Vale Indonesia slumped 1.29 percent, Timah plummeted 3.94 percent, Bumi Resources rallied 1.16 percent and Bank Danamon Indonesia, Indofood Sukses Makmur and Astra International were unchanged.

The lead from Wall Street is weak as the major averages hugged the line from below for most of the day, although the NASDAQ managed to break into the green.

The Dow slumped 302.30 points or 0.62 percent to finish at 48,114.26, while the NASDAQ added 54.05 points or 0.23 percent to close at 23,111.46 and the S&P 500 slipped 16.25 points or 0.24 percent to end at 6,800.26.

The choppy trading on Wall Street followed the release of the Labor Department's report on employment in November.

Most economists said the data has increased the likelihood the Federal Reserve will continue cutting interest rates in the near future, but the report also raised concerns about the strength of the economy.

A separate report released by the Commerce Department showed retail sales in the U.S. were roughly flat in October.

Crude oil prices extended recent losses Tuesday on lingering oversupply concerns, especially if an end to hostilities between Russia and Ukraine could exacerbate the supply glut. West Texas Intermediate crude for January delivery was down $1.57 or 2.8 percent to $55.25 per barrel.

Closer to home, The central bank in Indonesia is also set to conclude its monetary policy meeting later today and announce its decision on rates; its benchmark lending rate (4.75 percent), deposit facility rate (3.75 percent) and lending facility rate (5.50 percent) all are seen unchanged.