The Indonesia stock market has moved lower in two straight sessions, plummeting more than 400 points or 5.7 percent along the way. The Jakarta Composite Index now rests just beneath the 6,820-point plateau although it’s due for at least a technical rebound on Wednesday.
The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The JCI finished sharply lower on Tuesday following losses from the resource stocks and mixed performances from the financials and cement companies.
For the day, the index retreated 89.96 points or 1.30 percent to finish at 6,819.79 after trading between 6,662.61 and 6,832.10.
Among the actives, Bank Danamon Indonesia collected 0.42 percent, while Bank CIMB Niaga dropped 0.96 percent, Bank Negara Indonesia advanced 0.85 percent, Bank Central Asia lost 0.99 percent, Bank Mandiri tumbled 2.70 percent, Indosat plunged 6.90 percent, Indocement rose 0.25 percent, Semen Indonesia fell 0.41 percent, Indofood Suskes soared 4.49 percent, United Tractors climbed 1.37 percent, Astra International shed 0.71 percent, Energi Mega Persada spiked 3.48 percent, Astra Agro Lestari stumbled 1.67 percent, Aneka Tambang sank 4.35 percent, Vale Indonesia plummeted 5.23 percent, Timah cratered 4.76 percent, Bumi Resources dropped 3.28 percent and Bakrie Sumatera Plantations and Bank Rakyat Indonesia were unchanged.
The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.
The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.
The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.
Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.
Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.
Closer to home, Indonesia will see April results for its consumer confidence index later today; in March, the index score was 111.0.
Market Analysis
Higher Open Anticipated For Indonesia Stock Market
2022-05-11 02:00:23
