Lower Open Anticipated For Indonesia Stock Market

The Indonesia stock market on Tuesday wrote a finish to the three-day slide in which it had stumbled more than 60 points or 0.8 percent. The Jakarta Composite Index now rests just shy of the 7,160-point plateau although it’s likely to turn lower again on Wednesday.

The global forecast for the Asian markets is soft thanks to ongoing concerns over the economy and the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The JCI finished modestly higher on Tuesday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index added 27.43 points or 0.38 percent to finish at 7,159.47.

Among the actives, Bank Danamon Indonesia shed 0.38 percent, while Bank CIMB Niaga lost 0.44 percent, Bank Negara Indonesia accelerated 2.74 percent, Bank Central Asia collected 0.31 percent, Bank Mandiri strengthened 1.17 percent, Bank Rakyat Indonesia perked 0.24 percent, Indosat Ooredoo spiked 3.21 percent, Indocement and Astra Agro Lestari both fell 0.27 percent, Semen Indonesia added 0.38 percent, Indofood Suskes tumbled 1.89 percent, United Tractors advanced 098 percent, Astra International climbed 1.10 percent, Energi Mega Persada plunged 3.08 percent, Aneka Tambang soared 4.47 percent, Vale Indonesia jumped 1.66 percent, Timah rallied 2.72 percent and Bumi Resources plummeted 5.88 percent.

The lead from Wall Street is negative as the major averages shook off early support on Tuesday, quickly heading south and remaining in the red for the rest of the session.

The Dow tumbled 308.12 points or 0.96 percent to finish at 31,790.87, while the NASDAQ dropped 134.53 points or 1.12 percent to close at 11,883.14 and the S&P 500 sank 44.45 points or 1.10 percent to end at 3,986.16.

The extended sell-off reflected lingering concerns about the outlook for interest rates and the impact further rate hikes will have on the economy.

Stocks have been under pressure since Federal Reserve Chair Jerome Powell said last Friday that the central bank plans to continue aggressively raising interest rates. Powell suggested that even after the Fed finishes tightening monetary policy, rates will remain at higher levels to ensure inflation remains contained.

In economic news, the Conference Board said that consumer confidence rebounded by more than expected in August. Also, the Labor Department said the number of job openings was little changed at 11.2 million on the last business day of July.

The price of crude oil showed a substantial move to the downside during trading on Tuesday amid concerns higher interest rates will lead to a global economic slowdown, reducing energy demand. West Texas Intermediate crude for October delivery plunged $5.37 or 5 percent to $91.64 a barrel.