Markets

Lower Open Expected For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in three straight sessions, plummeting more than 400 points or 5.7 percent along the way. The Jakarta Composite Index now rests just above the 6,815-point plateau and it's got another soft lead for Thursday's trade.

The global forecast for the Asian markets is mixed to lower, with technology stocks expected to take heavy damage amidst concerns over interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to split the difference.

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

For the day, the index eased 3.59 points or 0.05 percent to finish at 6,816.20 after trading between 6,796.30 and 6,902.22.

Among the actives, Bank Danamon Indonesia collected 0.42 percent, while Bank Negara Indonesia stumbled 1.40 percent, Bank Central Asia jumped 1.66 percent, Bank Mandiri and Indosat both retreated 1.23 percent, Bank Rakyat Indonesia slumped 0.88 percent, Indocement soared 4.74 percent, Semen Indonesia surged 6.15 percent, Indofood Suskes improved 0.78 percent, United Tractors rallied 2.03 percent, Astra International skidded 1.43 percent, Energi Mega Persada gained 0.84 percent, Bakrie Sumatera Plantations dropped 0.82 percent, Astra Agro Lestari soared 3.81 percent, Aneka Tambang sank 0.83 percent, Vale Indonesia fell 0.37 percent, Timah added 0.59 percent, Bumi Resources declined 1.69 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street is broadly negative as the major averages shook off early strength on Wednesday and accelerated into the red as the day progressed, finishing well under water.

The Dow tumbled 326.63 points or 1.02 percent to finish at 31,834.11, while the NASDAQ plummeted 373.44 points or 3.18 percent to end at 11,364.24 and the S&P 500 sank 65.87 points or 1.65 percent to close at 3,935.18.

The weakness that emerged on Wall Street came as traders digested a highly anticipated Labor Department report showing the annual rate of inflation slowed less than expected in April.

The data added to concerns the Federal Reserve will raise interest rates more aggressively in an effort to bring inflation down at a faster rate, which analysts fear could lead to a period of stagflation or an outright recession.

Crude oil prices climbed higher on Wednesday, rebounding sharply from recent losses thanks to data showing a significant drop in flows of Russian gas to Europe. West Texas Intermediate Crude oil futures for June ended higher by $5.95 or 6 percent at $105.71 a barrel.

Closer to home, Indonesia will provide March figures for retail sales later today; in February, sales were up 12.9 percent on year.

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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