The Indonesia stock market on Monday snapped the three-day losing streak in which it had stumbled nearly 150 points or 2 percent. The Jakarta Composite Index now rests just above the 7,500-point plateau although it’s tipped to open in the red on Tuesday.
The global forecast for the Asian markets is soft, ahead of key economic and earnings data later this week. The European markets were mixed and flat and the U.S. bourses were solidly lower and the Asian markets are tipped to follow the latter lead.
The JCI finished slightly higher on Monday as gains from the resource stocks were offset by weakness from the financial sector.
For the day, the index perked 804 points or 0.11 percent to finish at 7,504.13 after trading between 7,450.20 and 7,540.24.
Among the actives, Bank Mandiri and Bank CIMB Niaga both skidded 1.08 percent, while Bank Negara Indonesia tanked 2.35 percent, Bank Central Asia retreated 1.67 percent, Bank Rakyat Indonesia sank 0.82 percent, Indosat Ooredoo Hutchison improved 0.71 percent, Indocement jumped 1.83 percent, Indofood Sukses Makmur tumbled 1.77 percent, United Tractors shed 0.73 percent, Astra International dropped 0.97 percent, Energi Mega Persada rallied 1.67 percent, Astra Agro Lestari strengthened 1.52 percent, Aneka Tambang climbed 1.31 percent, Jasa Marga advanced 1.02 percent, Vale Indonesia spiked 2.33 percent, Timah surged 5.04 percent, Bumi Resources soared 2.96 percent and Bank Danamon Indonesia, Bank Maybank Indonesia and Semen Indonesia were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Monday and only moved lower as the day progressed, ending near session lows.
The Dow tumbled 398.51 points or 0.94 percent to finish at 41,954.24, while the NASDAQ plunged 213.95 points or 1.18 percent to close at 17,923.90 and the S&P 500 sank 55.13 points or 0.96 percent to end at 5,695.94.
The weakness on Wall Street came as traders reassessed their expectations for the outlook on interest rates. After Friday’s upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserve’s next policy announcement on Nov. 7.
The mood is cautious as investors await readings on consumer price and producer price inflation later in the week, as well as earnings announcements from several top banks.
On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas’ cross-border attack in Israel, which triggered the Middle East war.
Oil prices rose sharply on Monday amid the rising possibility of disruptions in supply in the Persian Gulf due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November jumped $2.76 or 3.71 percent at $77.14 a barrel, the highest close in nearly eight weeks.
Market Analysis
Lower Open Predicted For Indonesia Stock Market
2024-10-08 01:34:10
