Soft Start Called For Indonesia Stock Market

The Indonesia stock market has alternated between positive and negative finishes through the previous seven trading days since the end of the three-day winning streak in which it had advanced more than 70 points or 1 percent. The Jakarta Composite Index now sits just beneath the 7,210-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is broadly negative on rising pessimism over the outlook for interest rates. The European and U.S. markets finished sharply lower and the Asian markets figure to also open under pressure.

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

For the day, the index slumped 87.93 points or 1.20 percent to finish at 7,209.74 after trading between 7,197.83 and 7,299.20.

Among the actives, Bank CIMB Niaga spiked 2.10 percent, while Bank Mandiri skidded 1.06 percent, Bank Danamon Indonesia rallied 1.40 percent, Bank Negara Indonesia declined 1.26 percent, Bank Central Asia sank 0.77 percent, Bank Rakyat Indonesia lost 0.41 percent, Indocement tanked 1.97 percent, Semen Indonesia dropped 0.81 percent, Indofood Suskes shed 0.78 percent, United Tractors fell 0.32 percent, Astra International tumbled 1.89 percent, Energi Mega Persada accelerated 2.97 percent, Astra Agro Lestari slumped 1.08 percent, Aneka Tambang surged 5.46 percent, Vale Indonesia dipped 0.25 percent, Timah jumped 2.65 percent, Bumi Resources soared 4.65 percent and Indosat Ooredoo Hutchison was unchanged.

The lead from Wall Street suggests consolidation as the major averages opened sharply lower and stayed that way throughout the session.

The Dow plunged 524.63 points or 1.35 percent to finish at 38,272.75, while the NASDAQ tumbled 286.95 points or 1.80 percent to close at 15,655.60 and the S&P 500 sank 68.67 points or 1.37 percent to end at 4,953.17.

The sell-off on Wall Street followed the release of a highly anticipated Labor Department report showing consumer prices in the U.S. increased by slightly more than expected in January.

With Federal Reserve officials repeatedly saying they need more confidence that inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.

Treasuries yields surged in response to the data, with the yield on the benchmark ten-year note reaching its highest level in two months.

Oil prices climbed higher Tuesday amid concerns about supply due to the ongoing tensions in the Middle East. West Texas Intermediate Crude oil futures for March rose $0.95 or 1.25 percent at $77.87 a barrel, up for a seventh straight session.