Plus   Neg

Profit Taking Expected For Indonesia Stock Market

The Indonesia stock market has moved higher in two straight sessions, gathering almost 100 points or 1.6 percent along the way. The Jakarta Composite Index now rests just above the 6,150 point plateau although it's expected to run out of steam on Wednesday.

The global forecast for the Asian markets is negative on concerns over the health of the global economy and expected continued profit taking. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The JCI finished modestly higher on Tuesday as gains from the financials were capped by mixed performances from the resource and cement stocks.

For the day, the index advanced 34.54 points or 0.56 percent to finish at the daily high of 6,152.86 after moving as low as 6,118.47.

Among the actives, Bank Danamon Indonesia jumped 3.05 percent, while Bank Central Asia advanced 1.55 percent, Bank Mandiri collected 0.66 percent, Bank Negara Indonesia added 0.57 percent, Bank Rakyat Indonesia gained 0.54 percent, Bumi Resources spiked 3.70 percent, Aneka Tambang plunged 3.40 percent, Vale Indonesia contracted 2.10 percent, Indocement skidded 1.62 percent, Semen Indonesia climbed 1.51 percent, United Tractors soared 4.28 percent, Indofood Suskes shed 0.389 percent, Unilever added 0.46 percent and Indosat retreated 2.40 percent.

The lead from Wall Street is brutal as stocks saw a substantial move to the downside on Tuesday, more than offsetting Monday's strong gains.

The Dow shed 799.36 points or 3.10 percent to 25,027.07, while the NASDAQ plunged 283.09 points or 3.80 percent to 7,158.43 and the S&P fell 90.31 points or 3.24 percent to 2,700.006.

The sharp pullback came as the yield on two-year notes rose above the yield on five-year notes, which is seen as an indicator of an upcoming economic slowdown. Profit taking also was a factor following Monday's strong gains.

Uncertainty about whether the 90-day trade truce will give the U.S. and China enough time to reach a long-term trade agreement also inspired traders to cash in.

Crude oil prices moved higher on Tuesday amid speculation the OPEC members will agree on a production cut. Crude oil futures for January delivery ended up $0.30 or 0.6 percent at $53.25 a barrel.

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