Overbought Indonesia Bourse Called Higher Again On Wednesday

(RTTNews) - The Indonesia stock market has climbed higher in five straight sessions, accelerating more than 700 points or 10 percent in that span. The Jakarta Composite Index now rests just above the 7,675-point plateau and it's got another strong lead for Wednesday's trade.

The global forecast for the Asian markets is upbeat on tumbling crude oil prices and 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 follow suit.

The JCI finished sharply higher on Tuesday following gains from the financial shares, cement companies, food stocks and resource items.

For the day, the index surged 175.76 points or 2.34 percent to finish at 7,675.95 after trading between 7,592.74 and 7,686.35.

Among the actives, Bank CIMB Niaga improved 0.82 percent, while Bank Mandiri jumped 2.39 percent, Bank Danamon Indonesia collected 0.81 percent, Bank Negara Indonesia strengthened 1.63 percent, Bank Central Asia accelerated 2.66 percent, Bank Rakyat Indonesia rallied 2.67 percent, Indosat Ooredoo Hutchison tumbled 1.87 percent, Indocement rose 0.47 percent, Semen Indonesia gathered 0.42 percent, Indofood Sukses Makmur climbed 1.11 percent, United Tractors expanded 1.38 percent, Astra International shed 0.40 percent, Energi Mega Persada spiked 2.72 percent, Astra Agro Lestari elevated 1.57 percent, Aneka Tambang soared 4.00 percent, Vale Indonesia surged 4.47 percent, Timah skyrocketed 7.05 percent and Bumi Resources vaulted 7.38 percent.

The lead from Wall Street is firm as the major averages opened solidly in the green on Tuesday and continued to climb as the day progressed, ending at session highs.

The Dow jumped 317.74 points or 0.66 percent to finish at 48,535.99, while the NASDAQ soared 455.35 points or 1.96 percent to end at 23,639.08 and the S&P 500 rallied 81.14 points or 1.18 percent to close at 6,967.38.

The continued strength on Wall Street came amid optimism about a second round of talks between the U.S. and Iran over ending the Middle East conflict.

The news about potential negotiations contributed to a sharp pullback by the price of crude oil. In addition, the International Energy Agency's report cautioning crude oil "demand destruction" weighed on prices. West Texas Intermediate crude for May delivery was down $7.18 or 7.25 percent at $91.90 per barrel.

Adding to the positive sentiment, a report from the Labor Department showed producer prices in the U.S. increased much less than expected last month.