Indonesia Stock Market Tipped To Open In The Green

The Indonesia stock market has finished lower in two straight sessions, sinking more than 60 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 7,215-point plateau although it’s expected to open higher on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with bargain hunting likely after overdone selling a day earlier. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished slightly lower on Monday as losses from the resource and cement stocks were mitigated by support from the financial sector.

For the day, the index eased 9,63 points or 0.13 percent to finish at 7,215.98 after trading between 7,121.86 and 7,234.31.

Among the actives, Bank Danamon Indonesia climbed 1.27 percent, while Bank CIMB Niaga fell 0.47 percent, Bank Negara Indonesia collected 1.60 percent, Bank Central Asia strengthened 1.59 percent, Bank Mandiri shed 0.60 percent, Bank Rakyat Indonesia jumped 1.89 percent, Indosat rallied 2.14 percent, Indocement eased 0.25 percent, Semen Indonesia slid 0.42 percent, United Tractors tanked 2.39 percent, Astra International gained 0.35 percent, Energi Mega Persada added 0.57 percent, Bakrie Sumatera Plantations plummeted 6.25 percent, Astra Agro Lestari plunged 6.84 percent, Aneka Tambang tumbled 4.38 percent, Vale Indonesia declined 2.83 percent, Timah retreated 3.10 percent, Bumi Resources cratered 3.51 percent and Indofood Suskes was unchanged.

The lead from Wall Street ends up positive as the major averages spent most on Monday in negative territory before a later rally pushed them solidly into the green.

The Dow jumped 238.06 points or 0.70 percent to finish at 34,049.46, while the NASDAQ spiked 165.56 points or 1.29 percent to end at 13,004.85 and the S&P 500 gained 24.34 points or 0.57 percent to close at 4,296.12.

The late rebound on Wall Street came as treasuries pulled back as the day progressed. The ten-year yield continued to give ground after ending last Thursday’s trading at its highest closing level since December 2018.

The NASDAQ benefited from a surge by shares of Twitter (TWTR), which shot up by 5.7 percent after the social media giant accepted billionaire Elon Musk’s buyout deal valued at about $44 billion.

The soft start was the result of lingering concerns about the outlook for interest rates ahead of the Federal Reserve’s monetary policy meeting next week, as well as concerns about global economic growth amid a surge in Covid-19 cases in China.

Crude oil prices fell sharply on Monday as a spike in Covid cases in China raised concerns about energy demand. A strong U.S. dollar amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve also weighed on crude oil prices. West Texas Intermediate Crude oil futures for June ended down by $3.53 or 3.5 percent at $98.54 a barrel.