Indonesia Stock Market May Take Further Damage On Tuesday

The Indonesia stock market headed south again on Monday, one session after ending the two-day slide in which it had lost more than 90 points or 1.3 percent. The Jakarta Composite Index now sits just above the 6,740-point plateau and it’s likely to open in the red again on Tuesday.

The global forecast offers little clarity with few catalysts head of data later in the week, although treasury yields continue to be active. The European and U.S. markets were mixed and flat and the Asian markets figure to follow suit.

The JCI finished sharply lower on Monday following losses from the financial shares, resource stocks and telecom and cement companies.

For the day, the index slumped 107.20 points or 1.57 percent to finish at 6,741.96 after trading between 6,730.88 and 6,845.20.

Among the actives, Bank CIMB Niaga slumped 1.79 percent, while Bank Mandiri retreated 1.30 percent, Bank Danamon Indonesia stumbled 1.87 percent, Bank Negara Indonesia collected 0.40 percent, Bank Central Asia declined 1.39 percent, Bank Rakyat Indonesia gave away 0.99 percent, Indosat Ooredoo Hutchison tanked 2.27 percent, Indocement surrendered 1.78 percent, Semen Indonesia dropped 1.95 percent, Indofood Suskes skidded 1.12 percent, United Tractors plummeted 3.19 percent, Astra International tumbled 1.75 percent, Energi Mega Persada shed 3.23 percent, Astra Agro Lestari fell 0.35 percent, Aneka Tambang plunged 4.11 percent, Vale Indonesia lost 3.04 percent, Timah slid 2.78 percent and Bumi Resources weakened 1.65 percent.

The lead from Wall Street is murky as the major averages opened lower on Monday, broke into the green my midday before fading and ending mixed and little changed.

The Dow slumped 190.87 points or 0.58 percent to finish at 32,936.41, while the NASDAQ added 34.52 points or 0.27 percent to close at 13,018.33 and the S&P 500 slipped 7.12 points or 0.17 percent to end at 4,217.04.

Stocks initially came under pressure as treasury yields rebounded amid ongoing concerns about the outlook for interest rates. Following the pullback seen last Friday, the yield on the benchmark 10year note moved back to the upside, briefly peeking above the key 5 percent level.

The subsequent turnaround on Wall Street came as treasury yields turned lower as the day progressed, with the ten-year yield falling into negative territory.

Trading activity was subdued, however, thanks to a lack of major U.S. economic data – although the calendar picks up later in the week. The earnings season also should be a factor, with a slew of big-name companies due to report their quarterly results.

Crude oil prices fell sharply on Monday amid easing concerns about oil supply on hopes the diplomatic efforts in the Middle East will help prevent the conflict there from escalating into a bigger regional war. West Texas Intermediate Crude oil futures for November settled at $85.49, down $2.59 or about 2.94 percent.

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