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Rebound Anticipated For Indonesia Stock Market

The Indonesia stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had surged more than 170 points or 3 percent. The Jakarta Composite Index now rests just above the 6,415-point plateau although it figures to bounce higher again on Friday.

The global forecast for the Asian markets is broadly positive on a U.S. debt limit agreement, upbeat economic news and a spike in crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The JCI finished barely lower on Thursday following mixed performances from the financial shares and the resource stocks.

For the day, the index eased 0.93 points or 0.01 percent to finish at 6,416.40 after trading between 6,392.73 and 6,458.64.

Among the actives, Bank Danamon Indonesia jumped 1.44 percent, while Bank CIMB Niaga tumbled 1.89 percent, Bank Negara Indonesia fell 0.42 percent, Bank Central Asia slid 0.28 percent, Bank Mandiri collected 1.52 percent, Indosat rose 0.39 percent, Indocement rallied 2.78 percent, Semen Indonesia climbed 1.25 percent, Indofood Suskes spiked 1.52 percent, United Tractors tanked 2.36 percent, Astra International sank 4.60 percent, Astra Agro Lestari plunged 2.96 percent, Aneka Tambang advanced 1.30 percent, Vale Indonesia gained 0.85 percent, Timah shed 0.63 percent, Bumi Resources plummeted 6.52 percent and Bank Rakyat Indonesia was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Thursday and remained that way throughout the trading day.

The Dow surged 337.95 points or 0.98 percent to finish at 34,754.94, while the NASDAQ jumped 152.10 points or 1.05 percent to close at 14,654.02 and the S&P 500 gained 36.21 points or 0.83 percent to end at 4,399.76.

The rally on Wall Street came as lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default. The agreement would reportedly increase the debt limit by $480 billion, allowing the Treasury to continuing paying its bills through December 3.

Adding to the positive sentiment, a report from the Labor Department showed a bigger than expected pullback in first-time claims for U.S. unemployment benefits last week.

Crude oil prices advanced Thursday, rebounding from losses in the previous session, on reports the U.S. Energy Department is unlikely to tap the nation's Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for November ended up $0.87 or 1.1 percent at $78.30 a barrel.

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