Indonesia Bourse May See Positive Bounce

The Indonesia stock market on Monday snapped the two-day winning streak in which it had climbed almost 160 points or 2.6 percent. The Jakarta Composite Index now sits just shy of the 6,325-point plateau although it may move higher again on Tuesday.

The global forecast for the Asian markets suggests mild upside on easing bond yields ahead of Wednesday’s Federal Reserve meeting. The European markets were down and the U.S. bourses were up and the Asian markets are called mixed with an upside bias.

The JCI finished modestly lower on Monday following losses from the cement companies and mixed performances from the finance and resource stocks.

For the day, the index lost 33.95 points or 0.53 percent to finish at the daily low of 6,324.26 after peaking at 6,387.74.

Among the actives, Bank Danamon Indonesia dropped 0.95 percent, while Bank CIMB Niaga soared 3.60 percent, Bank Negara Indonesia spiked 2.85 percent, Bank Central Asia retreated 1.48 percent, Bank Mandiri skidded 1.12 percent, Bank Rakyat Indonesia eased 0.22 percent, Indosat shed 0.44 percent, Telkom Indonesia sank 2.03 percent, Indocement tanked 3.63 percent, Semen Indonesia tumbled 2.63 percent, Indofood Suskes rose 0.39 percent, United Tractors lost 0.59 percent, Astra International advanced 0.91 percent, Astra Agro Lestari gained 0.66 percent, Aneka Tambang plunged 3.31 percent, Vale Indonesia climbed 1.51 percent, Timah plummeted 6.86 percent and Bumi Resources and Perusahaan Gas were unchanged.

The lead from Wall Street ended up being positive as stocks languished near the unchanged line throughout Monday morning before breaking well into the green in the afternoon.

The Dow jumped 174.82 points or 0.53 percent to finish at 32,953.46, while the NASDAQ spiked 139.84 points or 1.05 percent to end at 13,459.71 and the S&P 500 gained 25.60 points or 0.65 percent to close at 3,968.94.

The strength that emerged on Wall Street reflected optimism about the economic outlook amid stepped up coronavirus vaccination efforts and the recent passage of a new $1.9 trillion stimulus bill.

A pullback by treasury yields may also have generated some buying interest, with the ten-year yield moving lower after ending last Friday’s trading at its highest closing level in over a year.

Trading activity was subdued, however, as traders looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday. Traders are hoping the Fed will address the recent spike in bond yields, which has led to considerable volatility in Wall Street in recent sessions.

Crude oil futures ended lower on Monday with traders weighing energy demand prospects in the wake of a spike in coronavirus cases in Europe. West Texas Intermediate Crude oil futures for April slid $0.22 or 0.3 percent at $65.39 a barrel.