Indonesia Bourse Tipped To Remain Rangebound

The Indonesia stock market has moved lower in two of three trading days since the end of the four-day winning streak in which it had advanced more than 85 points or 1.3 percent. The Jakarta Composite Index now rests just beneath the 6,050-point plateau although it’s likely to move higher again on Thursday.

The global forecast for the Asian markets is mildly positive, with stimulus optimism tempered by sinking crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.

The JCI finished barely lower on Wednesday following losses from the cement companies and mixed performances from the financials and resource stocks.

For the day, the index dipped 3.07 points or 0.05 percent to finish at 6,044.04 after trading between 6,022.31 and 6,066.99.

Among the actives, Bank Danamon Indonesia skidded 1.38 percent, while Bank CIMB Niaga collected 0.56 percent, Bank Negara Indonesia gained 0.42 percent, Bank Central Asia rose 0.17 percent, Bank Mandiri shed 0.43 percent, Bank Rakyat Indonesia cratered 1.80 percent, Indosat tanked 3.15 percent, Indocement surrendered 2.59 percent, Semen Indonesia plunged 3.76 percent, United Tractors retreated 1.81 percent, Astra Agro Lestari tumbled 1.90 percent, Aneka Tambang lost 0.81 percent, Vale Indonesia added 0.41 percent, Timah plummeted 2.85 percent, Bumi Resources declined 1.67 percent and Indofood Suskes and Astra International were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened higher on Wednesday but then spent the rest of the session hugging both sides of the unchanged line before ending slightly in the green.

The Dow gained 104.42 points or 0.30 percent to finish at 34,681.79, while the NASDAQ rose 1.42 points or 0.01 percent to end at 14,665.06 and the S&P 500 added 14.59 points or 0.34 percent to close at 4,358.13.

The higher close on Wall Street came as the minutes of the Federal Reserve’s latest monetary policy meeting signaled the central bank will not be in a hurry to begin scaling back its asset purchase program.

The minutes of the June meeting reiterated Fed Chair Jerome Powell’s view that “substantial further progress” towards the goals of maximum employment and price stability has not yet been met.

The Fed has repeatedly said it plans to continue to its asset purchases at a rate of at least $120 billion per month until “substantial further progress” has been made toward its goals.

Crude oil prices tumbled on Wednesday amid concerns that several leading oil producers will increase output following a disagreement over policy. West Texas Intermediate Crude oil futures for August ended down $1.17 or 1.6 percent at $72.20 a barrel.