The Indonesia stock market on Wednesday snapped the two-day slide in which it had plummeted more than 300 points or 5 percent. The Jakarta Composite Index now rests just above the 5,815-point plateau although it's tipped to see renewed selling pressure on Thursday.
The global forecast for the Asian markets is soft thanks to global trade concerns and a tumble in the price of crude oil. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.
The JCI finished modestly higher on Wednesday following gains from the financial shares and resource stocks.
For the day, the index climbed 46.72 points or 0.81 percent to finish at 5,816.59 after trading between 5,689.94 and 5,819.64. There were 187 gainers and 183 decliners, with 128 stocks finishing unchanged.
Among the actives, XL Axiata surged 6.96 percent, while Jasa Marga spiked 2.44 percent, Bank Pan Indonesia jumped 2.05 percent, Bukit Darmo Property skidded 1.47 percent, Lotte Chemical added 0.68 percent, Bank Danamon Indonesia collected 0.74 percent, Bank Central Asia eased 0.21 percent, Bank Mandiri climbed 1.12 percent, Bank Negara Indonesia advanced 1.03 percent, Bank Rakyat Indonesia soared 2.56 percent, Indosat retreated 1.80 percent, Bumi Resources perked 1.83 percent, Aneka Tambang gathered 2.37 percent. Vale Indonesia gained 0.76 percent and Tiga Pilar Sejahtera Food, SLJ Global, Bank MNC Internasional and Voksel Electric were unchanged.
The lead from Wall Street is negative as stocks opened sharply lower on Wednesday. They made back some ground but still ended firmly in the red, offsetting the previous day's gains.
The Dow shed 137.51 points or 0.54 percent to 25,162.41, while the NASDAQ tumbled 96.78 points or 1.23 percent to 7,774.12 and the S&P 500 slid 21.59 points or 0.76 percent to 2,818.37.
Renewed concerns about Turkey contributed to the early sell-off after the Turkish government increased tariffs on American cars, alcohol and cigarettes. The move is likely to intensify the dispute between the U.S. and Turkey, which recently dragged the Turkish lira to a record low.
In economic news, the Federal Reserve noted a smaller than expected increase in industrial production in July. Also, the Commerce Department said retail sales climbed more than expected in July. And the National Association of Home Builders noted a modest deterioration in homebuilder confidence in August.
Crude oil prices plummeted to a 10-week low on Wednesday, after data showed an unexpected jump in U.S. crude stockpiles last week. Crude oil futures for September delivery ended down $2.03 or 3 percent at $65.01 a barrel, after declining to a low of $64.51 in the session.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting today and then announce its decision on interest rates. The central bank is widely expected to keep its benchmark lending rate unchanged at 5.25 percent.
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