Indonesia Bourse Overdue For Consolidation

(RTTNews) – The Indonesia stock market has climbed higher in seven straight sessions, advancing almost 210 points or 4.2 percent along the way. The Jakarta Composite Index now sits just above the 5,130-point plateau although investors figure to cash in on Wednesday.

The global forecast for the Asian markets is soft on profit taking and on concerns for a COVID-19 vaccine. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The JCI finished modestly higher on Tuesday following gains from the financials and mixed performances from the resource and cement stocks.

For the day, the index picked up 39.47 points or 0.78 percent to finish at 5,132.57 after trading between 5,064.17 and 5,132.74.

Among the actives, Bank Danamon Indonesia rallied 2.19 percent, while Bank Mandiri advanced 0.89 percent, Bank CIMB Niaga climbed 1.31 percent, Bank Rakyat Indonesia accelerated 2.82 percent, Bank Negara Indonesia jumped 1.93 percent, Indocement spiked 2.76 percent, Semen Indonesia shed 0.53 percent, Indofood Suskes added 0.69 percent, Astra Agro Lestari rose 0.23 percent, Aneka Tambang tumbled 1.92 percent, Vale Indonesia tanked 2.79 percent, Timah skidded 1.34 percent and Bank Central Asia, Bumi Resources, Indosat and United Tractors were unchanged.

The lead from Wall Street is negative as stocks opened lower and largely remained that way, finishing in the red after three straight sessions of gains.

The Dow sank 157.71 points or 0.55 percent to finish at 28,679.81, while the NASDAQ slid 12.36 points or 0.10 percent to end at 11,863.90 and the S&P 500 fell 22.29 points or 0.63 percent to close at 3,511.93.

The pullback on Wall Street may partly have reflected profit taking after the major averages climbed to their best closing levels in over a month on Monday.

Negative sentiment was also generated in reaction to news that Johnson & Johnson has paused a late-stage trial of its COVID-19 vaccine candidate due to an unexplained illness in a study participant.

Uncertainty about a new stimulus bill also weighed on Wall Street, as House Speaker Nancy Pelosi continued her attacks on the White House’s latest offer.

In economic news, the Labor Department reported a modest increase in consumer prices last month, with the uptick in prices matching estimates.

Crude oil prices rose sharply on Tuesday, lifted by a jump in Chinese crude oil imports last month. But the upside was capped by a surge in crude output in the Gulf of Mexico region as work in oil facilities resumed after Hurricane Delta. West Texas Intermediate Crude futures for November ended up $0.77 or 2 percent at $40.20 a barrel.

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