More Pain Predicted For Indonesia Stock Market

The Indonesia stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had gathered more than 120 points or 2 percent. The Jakarta Composite Index now rests just beneath the 6,100-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is negative on concerns over the coronavirus and for the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The JCI finished slightly lower on Tuesday following weakness from the cement companies and mixed performances from the financials and resource stocks.

For the day, the index eased 9.35 points or 0.15 percent to finish at 6,097.05 after trading between 6,068.51 and 6,144.58.

Among the actives, Bank Danamon Indonesia skidded 1.38 percent, while Bank CIMB Niaga collected 0.52 percent, Bank Negara Indonesia shed 0.50 percent, Bank Mandiri added 0.43 percent, Bank Rakyat Indonesia dropped 0.78 percent, Indosat tanked 2.07 percent, Indocement plunged 2.46 percent, Semen Indonesia tumbled 2.05 percent, Indofood Suskes climbed 1.15 percent, United Tractors dropped 0.99 percent, Astra International dipped 0.21 percent, Astra Agro Lestari rose 0.31 percent, Aneka Tambang plummeted 3.80 percent, Vale Indonesia surrendered 2.30 percent, Timah declined 1.20 percent, Bumi Resources retreated 1.75 percent and Bank Central Asia was unchanged.

The lead from Wall Street is soft as the major averages opened lower on Monday and remained in the red throughout the session.

The Dow shed 85.79 points or 0.24 percent to finish at 35,058.51, while the NASDAQ plummeted 180.14 points or 1.21 percent to end at 14,660.58 and the S&P 500 sank 20.84 points or 0.47 percent to close at 4,401.46.

The pullback on Wall Street reflected uncertainty ahead of the Federal Reserve’s monetary policy announcement later today. Traders are likely to pay close attention to the Fed’s statement for any clues the central bank is considering scaling back its asset purchase program.

Negative sentiment may also have been generated in reaction to news that the CDC has recommend that people vaccinated for the coronavirus resume wearing masks indoors in areas of high transmission, particularly the South and West.

In economic news, the Commerce Department said new orders for U.S. manufactured durable goods saw continued growth in June. Also, the Conference Board said consumer confidence in the U.S. saw a slight improvement from an upwardly revised level in July.

Crude oil priced drifted lower on Tuesday after moving around the flat line for much of the day’s session, with traders weighing demand prospects and looking ahead to weekly inventory data. West Texas Intermediate Crude futures for September dipped $0.26 or 0.4 percent at $71.65 a barrel.