Indonesia Shares May Take Further Damage On Wednesday

The Indonesia stock market returned decidedly to the downside from the Eid holiday, snapping a three-day winning streak in which it had advanced almost 350 points or 5 percent. The Jakarta Composite Index now sits just beneath the 6,000-point plateau and it’s expected to open in the red again on Wednesday.

The global forecast suggests volatility, with wild swings on deeply discounted stocks tempered by ongoing trade concerns. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished sharply lower on Tuesday with damage in all sectors as it caught up on missed sentiment, especially among the financials, cement stocks and resource companies.

For the day, the index plummeted 514.48 points or 7.90 percent to finish at 5,996.14 after trading between 5,882.60 and 6,036.55.

Among the actives, Bank CIMB Niaga surrendered 5.60 percent, while Bank Mandiri plunged 10.19 percent, Bank Danamon Indonesia retreated 5.33 percent, Bank Negara Indonesia declined 4.95 percent, Bank Central Asia crashed 8.53 percent, Bank Rakyat Indonesia plunged 10.12 percent, Indosat Ooredoo Hutchison cratered 13.75 percent, Indocement stumbled 12.69 percent, Semen Indonesia slumped 14.72 percent, Indofood Sukses Makmur jumped 1.41 percent, United Tractors tumbled 14.65 percent, Astra International skidded 8.94 percent, Energi Mega Persada dropped 8.09 percent, Astra Agro Lestari shed 6.70 percent, Aneka Tambang sank 14.37 percent, Vale Indonesia lost 14.98 percent, Timah fell 12.50 percent and Bumi Resources weakened 13.98 percent.

The lead from Wall Street suggests further consolidation as the major averages opened in the green on Tuesday but faded as the day progressed, ending firmly under water.

The Dow stumbled 320.01 points or 0.84 percent to finish at 37,645.69, while the NASDAQ plunged 335.35 points or 2.15 percent to close at 15,267.91 and the S&P 500 dropped 79.48 points or 1.57 percent to end at 4,982.77.

The early rally on Wall Street partly reflected optimism about negotiations on President Donald Trump’s new tariffs that could help avoid a global trade war.

Buying waned over the course of the session, however, as tensions over tariffs continue to rise between the U.S. and China.

After showing a strong move to the upside early in the session, the price of crude oil once again came under pressure over the course of the trading day on Tuesday. West Texas Intermediate for May delivery tumbled $1.12 or 1.9 percent to $59.58 a barrel, its lowest level since April 2021.