Indonesia Stock Market Predicted To Open Under Pressure

The Indonesia stock market has finished lower in two straight sessions, sinking more than 100 points or 1.6 percent along the way. The Jakarta Composite Index now sits just above the 6,505-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is soft on lockdown concerns resulting from the Omicron strain of COVID-19. The European markets were up and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Wednesday following losses from the resource stocks and a mixed picture from the financial sector.

For the day, the index slid 26.25 points or 0.40 percent to finish at 6,507.68 after trading between 6,494.50 and 6,593.07.

Among the actives, Bank Danamon Indonesia retreated 1.66 percent, while Bank Negara Indonesia sank 2.21 percent, Bank Central Asia collected 0.34 percent, Bank Mandiri climbed 1.07 percent, Bank Rakyat Indonesia dipped 0.24 percent, Indosat tanked 3.68 percent, Indocement rallied 2.13 percent, Semen Indonesia advanced 1.25 percent, Indofood Suskes soared 3.57 percent, United Tractors spiked 3.16 percent, Astra International dropped 2.16 percent, Astra Agro Lestari tumbled 2.01 percent, Aneka Tambang skidded 1.30 percent, Vale Indonesia surrendered 2.09 percent, Timah lost 2.22 percent, Bumi Resources declined 1.52 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street ends up broadly negative as the major averages opened sharply higher on Wednesday but then plummeted deep into the red in the final hour of trade.

The Dow plunged 461.68 points or 1.34 percent to finish at 34,022.04, while the NASDAQ tumbled 283.64 points or 1.83 percent to close at 15,254.05 and the S&P 500 sank 53.96 points or 1.18 percent to end at 4,513.04.

The substantial downturn on Wall Street came after the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.

“The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive,” the CDC said. “All close contacts have been contacted and have tested negative.”

Traders largely shrugged off the latest U.S. economic news, including a report from payroll processor ADP showing that private sector employment increased more than expected in November. Also, the Institute for Supply Management said manufacturing activity grew at a slightly faster rate last month.

Crude oil prices showed a strong move to the upside in early trading on Wednesday but came under pressure over the course of the session on news of the Omicron case. Crude for January delivery slumped $0.61 or 0.9 percent $65.57 a barrel, its lowest closing level in three months.