RTTNews - The Indonesian stock market has finished higher now in two of four sessions since ending last week's three-day winning streak in which it had gained more than 135 points or 6.5 percent. The Jakarta Composite Index jumped above the 2,380-point plateau to a fresh 13-month closing high, although analysts warn that the market is likely to retreat modestly at the opening of trade on Tuesday.
The global forecast for the Asian markets is flat with a negative bias - particularly as investors may look to consolidate their positions after strong gains in the previous trading day. Commodities could see significant selling pressure, along with properties and airlines. The European markets were mostly lower, while the U.S. bourses ended slightly in negative territory - and the Asian markets are tipped also to move to the downside.
The JCI finished sharply higher on Monday, buoyed by better than expected GDP numbers. Agricultural stocks led the gainers, while the miners also saw significant gains.
For the day, the index jumped 40.42 points or 1.72 percent to close at 2,389.56 after trading between 2,349.75 and 2,394.32. Volume was 17.6 billion shares worth 7.89 trillion rupiah. There were 145 gainers and 64 decliners, with 69 stocks finishing unchanged.
Among the gainers, Bumi Resources surged 7.56 percent, while Telekomunikasi Indonesia added 2.27 percent, Astra Agro Lestari soared 9.33 percent, Bank Central Asia gained 2.42 percent and Astra International rose 1.61 percent.
Bucking the trend, Perusahaan Gas Negara eased 0.71 percent, while Indo Tambangmegah Raya fell 1.61 percent, Semen Gresik shed 0.83 percent and Tambang Batubara Bukit Asam was off 0.74 percent.
The lead from Wall Street has a touch of downside as stocks posted modest losses on Monday with traders cashing in on recent gains amid a lack of significant moves. The major averages all finished in negative territory, kicking off the week on a sour note. The decline came ahead of some key economic reports on tap for this week, including data on retail sales, industrial production and weekly jobless claims.
Further, the Federal Open Market Committee will make its interest rate announcement on Wednesday, with the key fed funds rate expected to remain unchanged amid a challenging economic environment.
On the corporate front, Freddie Mac (FRE) said late Friday that it no longer needs government aid, as the mortgage lender posted a positive net worth. Benefiting from accounting adjustments and gains, Freddie Mac reported a second quarter profit of $821 million on a notable increase in revenues to $7.47 billion from last year's $1.59 billion.
Warren Buffett-owned Berkshire Hathaway (BRKA) reported a 14 percent increase in second quarter earnings, fueled by gains from derivatives trading, which soared to $1.53 billion from $453 million in the second quarter of last year. The firm earned $1,147 per share, while Wall Street analysts expected the company to earn $1,238 per share for the quarter.
Microsoft (MSFT), which recently struck a ten-year deal with Yahoo (YHOO) to share search engine technology and ad revenue, announced an agreement with French ad company Publicis to sell its Razorfish digital advertising unit.
The major averages regained some ground going into the close of trading, although they remained stuck in the red. The Dow closed down by 32.12 points or 0.3 percent at 9,337.95, the NASDAQ slipped by 8.01 points or 0.4 percent to 1,992.24 and the S&P 500 fell by 3.38 points or 0.3 percent to 1,007.10.
In economic news, the Indonesian economy expanded 4 percent year-on-year in the second quarter, slower than the 4.4 percent growth recorded in the first three months of the year, the statistical agency reported Monday. The annual growth rate topped economists' expectations for a 3.8 percent expansion.
Compared to the first quarter, gross domestic product or GDP rose 2.3 percent, quicker than the 1.7 percent increase in the first three months of the year and 2.1 percent growth expected. The economy expanded 4.2 percent in the first half, compared to the same period of the previous year.
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