(RTTNews) – The Indonesia stock market ticked higher again on Tuesday, one day after ending the three-day winning streak in which it had advanced almost 130 points or 1.8 percent. The Jakarta Composite Index now sits just above the 7,080-point plateau although it’s expected to open under pressure on Wednesday.
The global forecast for the Asian markets is negative on renewed concerns about the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The JCI finished slightly higher on Tuesday following gains from the food stocks, weakness from the financials and a mixed picture from the resource companies.
For the day, the index perked 2.81 points or 0.04 percent to finish at 7,083.28 after trading between 7,029.51 and 7,103.19.
Among the actives, Bank Mandiri retreated 1.32 percent, while Bank Danamon Indonesia fell 0.39 percent, Bank Negara Indonesia stumbled 1.58 percent, Bank Central Asia declined 1.55 percent, Bank Rakyat Indonesia weakened 1.71 percent, Indosat Ooredoo Hutchison shed 0.43 percent, Indocement tumbled 1.82 percent, Semen Indonesia slumped 1.24 percent, Indofood Sukses Makmur climbed 1.02 percent, United Tractors jumped 1.77 percent, Astra International rallied 1.23 percent, Energi Mega Persada plunged 2.46 percent, Astra Agro Lestari lost 0.41 percent, Aneka Tambang surrendered 2.05 percent, Jasa Marga tanked 2.18 percent, Vale Indonesia dipped 0.29 percent, Timah dropped 1.46 percent, Bumi Resources gained 0.84 percent and Bank CIMB Niaga and Bank Maybank Indonesia were unchanged.
The lead from Wall Street is bleak as the major averages opened slightly higher on Tuesday but quickly turned lower and finished deep in the red.
The Dow stumbled 178.20 points or 0.42 percent to finish at 42,528.36, while the NASDAQ plummeted 375.30 points or 1.89 percent to close at 19,489.68 and the S&P 500 sank 66.35 points or 1.11 percent to end at 5,909.03.
The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark 10-year note surging to its highest closing level in eight months.
The jump by treasury yields, which led to concerns about the outlook for interest rates, came following the release of some upbeat U.S. economic data.
The Institute for Supply Management said U.S. service sector activity increased more than expected in December. The report also said the prices index surged to a one-year high, leading to concerns that inflation will remain sticky. Also, the Labor Department said job openings in the U.S. unexpectedly increased in November.
Oil prices climbed higher Tuesday amid a possible supply shortage after China decided to reject imports from Iran and Russia, while unusually cold weather in the U.S. also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for February closed up $0.69 or 0.94 percent at $74.25 a barrel.
