Indonesia Stock Market Due For Consolidation

(RTTNews) - The Indonesia stock market has tracked higher in two straight sessions, gathering almost 30 points or 0.5 percent along the way. The Jakarta Composite Index now rests just above the 6,280-point plateau although it's tipped to open in the red on Wednesday.

The global forecast for the Asian markets suggests mild consolidation ahead of the Federal Reserve's highly anticipated monetary policy announcement later today. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow suit.

The JCI finished modestly higher on Tuesday following gains from the cement stocks and mixed performances from the financials and resource companies.

For the day, the index gained 15.75 points or 0.25 percent to finish at the daily high of 6,281.14 after moving as low as 6,245.94.

Among the actives, Bank Mandiri climbed 1.43 percent, while Bank Central Asia collected 0.24 percent, Bank Negara Indonesia shed 0.64 percent, Indosat lost 0.32 percent, Indocement advanced 1.25 percent, Semen Indonesia added 0.39 percent, Indofood Suskes plunged 2.60 percent, Bumi Resources plummeted 5.05 percent, Aneka Tambang gained 1.09 percent, Vale Indonesia surged 4.23 percent and Timah, Bank Danamon Indonesia and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is uninspired as stocks showed a lack of direction on Tuesday, as traders were reluctant to make significant moves ahead of the Fed's rate decision and statement.

The Dow shed 19.26 points or 0.07 percent to end at 27,071.46, while the NASDAQ lost 49.13 points or 0.59 percent to 8,276.85 and the S&P 500 fell 2.53 points or 0.08 percent to 3,036.89.

The choppy trading on Wall Street came as traders took a wait-and-see approach even though the Fed is widely expected to cut interest rates by another quarter point.

Some negative sentiment was generated by reports suggesting a phase one trade deal between the U.S. and China may not be signed by the summit in Chile next month.

A mixed reaction to the latest batch of earnings news also contributed to the lackluster performance, with a notable drop by Google parent Alphabet (GOOGL) weighing on the tech-heavy NASDAQ.

In economic news, the Conference Board reported that consumer confidence unexpectedly edged lower in October. Also, the National Association of Realtors showed another significant increase in pending home sales in the U.S. in September.

Crude oil futures edged lower on Tuesday amid expectations that data from Energy Information Administration (EIA) will show a jump in crude inventories. West Texas Intermediate Crude oil futures for December fell $0.27 or 0.5 percent at $55.54 a barrel, the lowest settlement in a week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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