Lower Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Wednesday ended the two-day winning streak in which it had surged more than 370 points or 6 percent. The Jakarta Composite Index now sits just above the 6,220-point plateau and the losses may accelerate on Thursday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Wednesday following mixed performances from the financial shares, cement companies and resource stocks.

For the day, the index shed 34.23 points or 0.55 percent to finish at 6,220.74 after trading between 6,179.67 and 6,377.19.

Among the actives, Bank CIMB Niaga collected 0.95 percent, while Bank Mandiri dipped 0.22 percent, Bank Danamon Indonesia climbed 1.00 percent, Bank Central Asia rose 0.32 percent, Bank Rakyat Indonesia rallied 3.01 percent, Indosat Ooredoo Hutchison sank 0.80 percent, Indocement dropped 0.94 percent, Semen Indonesia jumped 2.25 percent, Indofood Sukses Makmur strengthened 1.50 percent, United Tractors improved 1.10 percent, Astra International tumbled 1.84 percent, Energi Mega Persada added 0.72 percent, Astra Agro Lestari vaulted 1.64 percent, Antam advanced 0.96 percent, Vale Indonesia plunged 1.67 percent, Timah expanded 1.72 percent, Bumi Resources cratered 2.89 percent and Bank Negara Indonesia was unchanged.

The lead from Wall Street is weak as the major averages opened slightly higher on Wednesday and hugged the line before tumbling after the Federal Reserve's rate decision.

The Dow dropped 507.12 points or 0.98 percent to finish at 51,492.55, while the NASDAQ slumped 354.69 points or 1.34 percent to close at 26,021.66 and the S&P 500 sank 91.25 points or 1.21 percent to end at 7,420.10.

The weakness that emerged on Wall Street came after the Fed left interest rates unchanged as widely expected, but projections suggest that rates could be higher by end of the year.

The Fed noted that inflation remains elevated relative to the Fed's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.

In economic news, the Commerce Department released a report showing retail sales in the U.S. increased by much more than expected in the month of May.

Crude oil prices ticked higher on Wednesday as energy experts remain skeptical of an early restoration of normal oil trade in the gulf region despite the upcoming U.S.-Iran deal. West Texas Intermediate crude for July delivery was up $0.45 or 0.59 percent at $76.50 per barrel.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate (5.50 percent), deposit facility rate (4.50 percent) and lending facility rate (6.25 percent) all unchanged.