Indonesia Stock Market May See Continued Consolidation

The Indonesia stock market on Tuesday ended the two-day winning streak in which it had collected more than 40 points or 0.6 percent. The Jakarta Composite Index now sits just above the 6,990-point plateau and it’s expected to open lower again on Wednesday.

The global forecast for the Asian markets suggests mild consolidation on growth concerns. The European and U.S markets were down and the Asian markets are predicted to open in similar fashion.

The JCI finished slightly lower on Tuesday following losses from the food stocks, gains from the cement companies and mixed performances from the financials and resource shares.

For the day, the index slid 5.04 points or 0.07 percent to finish at 6,991.71.

Among the actives, Bank CIMB Niaga fell 0.30 percent, while Bank Danamon Indonesia climbed 1.02 percent, Bank Negara Indonesia accelerated 1.85 percent, Indosat Ooredoo Hutchison surged 5.66 percent, Indocement advanced 0.94 percent, Semen Indonesia rallied 2.95 percent, Indofood Suskes sank 0.72 percent, United Tractors jumped 1.40 percent, Energi Mega Persada tanked 2.19 percent, Astra Agro Lestari rose 0.33 percent, Vale Indonesia added 0.42 percent, Timah slumped 1.13 percent, Bumi Resources shed 0.69 percent and Bank Mandiri, Bank Central Asia, Bank Rakyat Indonesia, Astra International, Aneka Tambang and Perusahaan Gas were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Tuesday and largely remained in the red throughout the session.

The Dow dropped 195.74 points or 0.56 percent to finish at 34,641.97, while the NASDAQ dipped 10.86 points or 0.08 percent to close at 14,020.95 and the S&P 500 fell 18.94 points or 0.42 percent to end at 4,496.83.

Concerns about the outlook for global economy following the release of disappointing Chinese and European data weighed on the market. A firm dollar and higher Treasury yields hurt as well.

In economic news, the Commerce Department reported a significant pullback in factory orders in July.

Oil prices climbed higher on Tuesday after Saudi Arabia and Russia announced they will extend their voluntary production cuts by three months. West Texas Intermediate Crude oil futures for October ended higher by $1.14 or about 1.3 percent at $86.69 a barrel.