Indonesia Bourse Expected To Remain Rangebound On Tuesday

The Indonesia stock market has moved higher in two of three trading days since the end of the three-day slide in which it had stumbled almost 100 points or 1.5 percent. The Jakarta Composite Index now sits just beneath the 6,660-point plateau although it figures to turn lower again on Tuesday.

The global forecast for the Asian markets is mixed to lower, with profit taking expected amid concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were down, and the Asian markets are tipped to trend generally lower as well.

The JCI finished modestly higher on Monday following gains from the financials, resource stocks and cement companies.

For the day, the index rose 7.35 points or 0.11 percent to finish at 6,659.25.

Among the actives, Bank Danamon Indonesia tanked 2.76 percent, while Bank Negara Indonesia collected 0.69 percent, Bank Central Asia improved 2.14 percent, Bank Mandiri rallied 2.44 percent, Bank Rakyat Indonesia gained 0.73 percent, Indosat Ooredoo shed 0.41 percent, Indocement strengthened 1.64 percent, Semen Indonesia jumped 1.96 percent, Indofood Suskes spiked 2.17 percent, United Tractors lost 0.60 percent, Astra International increased 1.26 percent, Energi Mega Persada dropped 0.90 percent, Bakrie Sumatera Plantations plunged 2.46 percent, Astra Agro Lestari surged 5.32 percent, Aneka Tambang climbed 1.30 percent, Vale Indonesia accelerated 2.31 percent, Timah advanced 2.36 percent, Bumi Resources soared 2.67 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street ends up negative as the major averages couldn’t hold on to early gains, sinking as the day progressed to close firmly in the red.

The Dow tumbled 215.65 points or 0.69 percent to finish at 31,072.61, while the NASDAQ sank 92.37 points or 0.81 percent to end at 11,360.05 and the S&P 500 lost 32.31 points or 0.84 percent to close at 3,830.85.

The early strength on Wall Street came as traders continued to pick up stocks at reduced levels, while positive sentiment was also generated in reaction to upbeat earnings news from Goldman Sachs (GS) and others.

Buying interest waned over the course of the session, however, as traders continued to worry about the economic outlook ahead of next week’s Federal Reserve meeting.

In U.S. economic news, the National Association of Home Builders released a report showing a substantial deterioration in U.S. homebuilder confidence in the month of July.

Crude oil prices rose sharply Monday with traders assessing crude supply levels amid concerns over gas supply from Russia. A weak dollar also contributed significantly to the jump in oil prices. West Texas Intermediate crude oil futures for August ended higher by $5.01 or 5.1 percent at $102.60 a barrel.

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