Higher Open Anticipated For Indonesia Stock Market

The Indonesia stock market on Monday snapped the two-day losing streak in which it had fallen almost 60 points or 0.8 percent. The Jakarta Composite Index now rests just above the 6,900-point plateau and it’s expected to add to its winnings on Tuesday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets finished firmly higher and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Monday following gains from the energy companies, weakness from the cement stocks and a mixed picture from the financial sector.

For the day, the index added 19.81 points or 0.29 percent to finish at 6,900.14.

Among the actives, Bank Danamon Indonesia gained 0.69 percent, while Bank Negara Indonesia slid 0.26 percent, Bank Central Asia added 0.57 percent, Bank Mandiri collected 0.49 percent, Bank Rakyat Indonesia slumped 1.23 percent, Indosat Ooredoo Hutchison surged 4.22 percent, Indocement shed 0.65 percent, Semen Indonesia tumbled 1.94 percent, Indofood Suskes tanked 2.54 percent, United Tractors improved 0.51 percent, Astra International rose 0.44 percent, Energi Mega Persada rallied 2.96 percent, Astra Agro Lestari fell 0.30 percent, Aneka Tambang advanced 0.90 percent, Vale Indonesia skidded 1.04 percent and Timah, Bumi Resources and Bank CIMB Niaga were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and accelerated as the day progressed, ending near session highs.

The Dow jumped 376.66 points or 1.11 percent to finish at 34,245.93, while the NASDAQ spiked 173.67 points or 1.48 percent and the S&P 500 rallied 46.83 points or 1.14 percent to end at 4,137.29.

The strength on Wall Street came as some traders looked to pick up stocks at reduced levels after last week’s weakness, which reflected ongoing concerns about the outlook for interest rates.

Trading remained subdued, however, as traders look ahead to Tuesday’s closely watched report on consumer price inflation. The inflation data could have a significant impact on the outlook for interest rates amid recent speculation the Federal Reserve may raise rates higher than anticipated.

Crude oil prices slumped on Monday afternoon, unable to held early gains. West Texas Intermediate was down $0.43 or 0.54 percent to $79.29 per barrel, coming off a high of $80.62 earlier in the day.