Lower Open Anticipated For Indonesia Stock Market

The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had fallen more than 25 points or 0.4 percent. The Jakarta Composite Index now rests just above the 6,600-point plateau and it’s looking at another soft start for Thursday’s trade.

The global forecast for the Asian markets suggests consolidation, due mainly to profit taking and sinking crude oil prices. The European and U.S. markets were down and the Asian bourses are predicted to open in similar fashion.

The JCI finished modestly lower on Wednesday as losses from the financial shares and resource stocks were mitigated by support from the cement companies.

For the day, the index dropped 54.73 points or 0.82 percent to finish at 6,602.21 after trading between 6,590.50 and 6,670.81.

Among the actives, Bank CIMB Niaga tanked 2.84 percent, while Bank Negara Indonesia dropped 2.75 percent, Bank Central Asia lost 1.00 percent, Bank Mandiri fell 0.35 percent, Bank Rakyat Indonesia gave away 1.38 percent, Indosat added 0.36 percent, Indocement rallied 2.25 percent, Semen Indonesia soared 3.28 percent, Indofood Suskes plunged 3.00 percent, Energi Mega Persada plummeted 3.94 percent, Astra International sank 2.44 percent, Astra Agro Lestari retreated 1.22 percent, Aneka Tambang declined 2.08 percent, Vale Indonesia skidded 1.23 percent, Timah surrendered 2.77 percent and Bumi Resources, Bank Danamon Indonesia and United Tractors were unchanged.

The lead from Wall Street offers little clarity as the major averages took different paths on Wednesday. The NASDAQ opened higher and finished the same way, albeit barely. The Dow spent most of the session in the red and the S&P 500 hugged the unchanged line before both ended in negative territory.

The Dow dropped 266.19 points or 0.74 percent to finish at 35,490.69, while the NASDAQ rose 0.12 points or 0.00 percent to close at 15,235.84 and the S&P 500 fell 23.11 points or 0.51 percent to end at 4,551.68.

While a mixed reaction to the latest earnings news contributed to choppy trading, traders also looked to cash in on recent strength in the markets in late-day trading as the Dow and S&P eased from record highs.

Corporate earnings were mixed as companies like Twitter (TWTR) and General Motors (GM) disappointed, while Microsoft (MSFT) and Google parent Alphabet (GOOGL) beat the street.

On the U.S. economic front, the Commerce Department said durable goods orders pulled back by much less than expected in September.

Crude oil prices sank Wednesday after data showed a larger than expected increase in U.S. crude stockpiles last week. Oil prices were also weighed down by prospects of Iran freeing itself from U.S. sanctions and start selling oil to major importers again. West Texas Intermediate crude oil futures for December were down by $1.99 or 2.3 percent at $82.66 a barrel.