Higher Open Tipped For Indonesia Stock Market

The Indonesia stock market on Wednesday ended the two-day slide in which it had stumbled almost 100 points or 1.6 percent. The Jakarta Composite Index now rests just above the 6,550-point plateau and it’s looking at another green light for Thursday’s trade.

The global forecast for the Asian markets is upbeat after the Federal Reserve said to scale back stimulus as expected and not worse – although weakness from crude oil may limit the upside. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The JCI finished modestly higher on Wednesday following gains from the financial shares, cement companies and resource stocks.

For the day, the index gained 58.85 points or 0.91 percent to finish at 6,552.13 after trading between 6,485.25 and 6,561.81.

Among the actives, Bank Danamon Indonesia climbed 1.18 percent, while Bank Negara Indonesia accelerated 3.31 percent, Bank Central Asia collected 0.68 percent, Bank Mandiri jumped 1.42 percent, Bank Rakyat Indonesia perked 1.90 percent, Indosat sank 0.71 percent, Indocement rallied 2.11 percent, Semen Indonesia surged 5.57 percent, Indofood Suskes fell 0.40 percent, United Tractors tanked 2.93 percent, Astra International improved 1.27 percent, Astra Agro Lestari added 0.46 percent, Aneka Tambang rose 0.43 percent, Vale Indonesia was up 0.21 percent, Timah gathered 1.30 percent, Bumi Resources soared 4.29 percent and Bank CIMB Niaga and Energi Mega Persada were unchanged.

The lead from Wall Street ends up positive as the major averages opened lower on Wednesday and languished in the red before a late rally sent them into the green at fresh record closing highs.

The Dow climbed 104.95 points or 0.29 percent to finish at 36,157.58, while the NASDAQ jumped 161.98 points or 1.04 percent to close at 15,811.58 and the S&P 500 gained 29.92 points or 0.65 percent to end at 4,660.57.

The late-day advance on Wall Street came after the Fed announced its widely expected decision to begin scaling back its asset purchases later this month.

The Fed said it plans to reduce its $120 billion in monthly bond purchases by $15 billion per month, citing the substantial further progress the economy has made toward its goals of maximum employment and price stability.

In economic news, payroll processor ADP said private sector employment in the U.S. increased more than expected in October. Also, the Institute for Supply Management showed growth in U.S. service sector accelerated to a new record high last month.

Crude oil futures settled sharply lower Wednesday after data showed a significant jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for December ended down by $2.74 or 3.3 percent at $81.17 a barrel.