Indonesia Stock Market Tipped To Open In The Green

The Indonesia stock market headed south again on Monday, one session after ending the three-day losing streak in which it had stumbled almost 220 points or 3.3 percent along the way. The Jakarta Composite Index now sits just above the 6,610-point plateau although it’s likely to move higher again on Tuesday.

The global forecast for the Asian markets is positive as financial institutions around the world continue to takes steps to head off more turmoil. The European and U. S. markets were up and the Asian bourses are tipped to follow that lead.

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

For the day, the index dropped 65.75 points or 0.98 percent to finish at 6,612.49.

Among the actives, Bank Danamon Indonesia gained 0.37 percent, while Bank Negara Indonesia eased 0.28 percent, Bank Central Asia collected 0.30 percent, Bank Mandiri dropped 0.99 percent, Bank Rakyat Indonesia was down 0.41 percent, Indosat Ooredoo Hutchison plunged 2.50 percent, Indocement climbed 1.25 percent, Semen Indonesia fell 0.41 percent, Indofood Suskes improved 1.22 percent, United Tractors plummeted 2.64 percent, Astra International added 0.43 percent, Energi Mega Persada slumped 1.87 percent, Aneka Tambang rose 0.26 percent, Vale Indonesia increased 0.39 percent, Timah lost 0.52 percent, Bumi Resources tanked 3.25 percent and Bank CIMB Niaga and Astra Agro Lestari were unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Monday but all eventually settled firmly in the green.

The Dow surged 382.60 points or 1.20 percent to finish at 32,244.58, while the NASDAQ rose 45.02 points or 0.39 percent to close at 11,675.54 and the S&P 500 added 34.93 points or 0.89 percent to end at 3,951.57.

The strength on Wall Street partly reflected a positive reaction to the latest efforts to address turmoil in the banking sector, including UBS Group’s (UBS) state-backed acquisition of Credit Suisse (CS).

The Federal Reserve also announced it has joined with other central banks around to world to take coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

Traders were also looking ahead to the Fed’s monetary policy announcement on Wednesday, with CME Group’s FedWatch Tool currently indicating a 26.9 percent chance interest rates will remain unchanged and a 73.1 percent chance of a 25-basis point rate hike.

Crude oil prices moved higher on Monday to settle on a firm note, shrugging off concerns the banking chaos might lead to financial crisis or a recession. West Texas Intermediate Crude oil futures for April ended higher by $0.90 or 1.4 percent at $67.64 a barrel.