Resistance Expected At 7,200 Points

The Indonesia stock market has finished higher in back-to-back trading days, collecting almost 100 points or 1.4 percent along the way. The Jakarta Composite Index now rests just above the 7,190-point plateau although the rally may stall on Thursday.

The global forecast for the Asian markets is soft on concerns for rising inflation and slowing growth. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The JCI finished modestly higher on Wednesday following gains from the resource and cement stocks, while the financials came in mixed.

For the day, the index advanced 52.27 points or 0.73 percent to finish at 7,193.31 after trading between 7,102.86 and 7,220.08.

Among the actives, Bank Danamon Indonesia plunged 3.44 percent, while Bank CIMB Niaga dropped 0.94 percent, Bank Negara Indonesia collected 1.12 percent, Bank Central Asia soared 3.05 percent, Bank Mandiri climbed 1.20 percent, Bank Rakyat Indonesia strengthened 1.59 percent, Indosat skyrocketed 13.24 percent, Indocement and Semen Indonesia both advanced 1.05 percent, Indofood Suskes added 0.72 percent, United Tractors gained 0.69 percent, Astra International fell 0.35 percent, Energi Mega Persada perked 0.68 percent, Vale Indonesia rose 0.65 percent, Timah increased 0.51 percent, Bumi Resources jumped 1.75 percent and Astra Agro Lestari, Bakrie Sumatera Plantations and Aneka Tambang were unchanged.

The lead from Wall Street is negative as the major averages opened lower and spent most of the session in the red before finishing firmly in negative territory.

The Dow shed 269.24 points or 0.81 percent to finish at 32,910.90, while the NASDAQ lost 88.96 points or 0.73 percent to end at 12,086.27 and the S&P 500 sank 44.91 points or 1.08 percent to close at 4,115.77.

The weakness on Wall Street followed lower global growth forecasts by the World Bank and the Organization for Economic Cooperation and Development weighed as well.

Higher treasury yields also caused the market’s decline after they rose above the psychologically important 3 percent level, fueling concerns about inflation.

In economic news, the Commerce Department said wholesale inventories in the United States increased more than expected in April, although they were down from the previous month.

Crude oil prices climbed higher on Wednesday, buoyed by a sharp drop in gasoline inventories in the U.S. last week, and on optimism for increased demand from China. West Texas Intermediate Crude oil futures for July ended higher by $2.70 or 2.3 percent at $122.11 a barrel, hitting a three-week high.

Closer to home, Indonesia will see May results for its consumer confidence index later today; in April, the index score was 113.1.