Indonesia Stock Market May Be Stuck In Neutral On Wednesday

The Indonesia stock market has climbed higher in six straight sessions, gathering more than 150 points or 2.9 percent along the way. The Jakarta Composite Index now rests just beneath the 5,300-point plateau although it may spin its wheels on Wednesday.

The global forecast for the Asian markets is mixed to lower, with support from technology stocks expected to mitigate geopolitical and coronavirus concerns. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished modestly higher on Tuesday following gains from the financial shares and cement companies, while the resource stocks were mixed.

For the day, the index advanced 47.48 points or 0.90 percent to finish at 5,295.17 after trading between 5,244.00 and 5,316.13.

Among the actives, Bank Danamon Indonesia collected 0.72 percent, while Bank Mandiri spiked 2.07 percent, Bank CIMB Niaga accelerated 2.53 percent, Bank Negara Indonesia advanced 1.00 percent, Indosat tumbled 1.97 percent, Indocement rose 0.21 percent, Semen Indonesia rallied 2.63 percent, United Tractors jumped 2.28 percent, Indofood Suskes skidded 1.02 percent, Astra Agro Lestari shed 0.49 percent, Aneka Tambang surged 2.55 percent, Vale Indonesia gained 2.19 percent, Timah rose 0.64 percent and Bumi Resources was unchanged.

The lead from Wall Street is inconclusive as the NASDAQ and S&P 500 shook off early weakness on Tuesday and finished firmly in the green, while the Dow languished in negative territory.

The Dow fell 66.84 points or 0.24 percent to finish at 27,778.07, while the NASDAQ jumped 81.12 points or 0.73 percent to end at 11,210.84 and the S&P 500 rose 7.79 points or 0.23 percent to close at a record high 3,389.78.

The mixed picture from Wall Street came as Boeing and financials continued to weigh the Dow, while tech shares supported the NASDAQ.

Traders were generally in a holding pattern ahead of tomorrow's release of minutes of the U.S. Federal Reserve's monetary policy meeting, which may provide clues to future moves.

Simmering tensions between the United States and China provided negative sentiment after the Trump administration announced on Monday it will further tighten restrictions on Huawei Technologies in a bid to limit the company's access to electronic components.

Crude oil prices fell on Tuesday as a rising number of coronavirus cases around the world threatened to jeopardize a recovery in fuel demand. West Texas Intermediate futures were down 16 cents or 0.38 percent at $42.57 after a 2.1 percent gain in the previous 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 steady at 4.00 percent.