Indonesia Bourse May See Continued Support

The Indonesia stock market rebounded on Monday, one session after it had halted the two-day winning streak in which it had collected more than 90 points or 2 percent. The Jakarta Composite Index now sits just beneath the 4,515-point plateau and it may extend its gains on Tuesday.

The global forecast for the Asian markets is upbeat on stimulus expectations and hopes that the U.S. economy will soon be re-opened. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The JCI finished modestly higher on Monday following gains from the cement and resource stocks, while the financials came in mixed.

For the day, the index was up 17.08 points or 0.38 percent to finish at 4,513.14 after trading between 4,474.89 and 4,541.31.

Among the actives, Bank Danamon Indonesia jumped 1.65 percent, while Bank Mandiri tumbled 3.04 percent, Bank Central Asia collected 0.81 percent, Indosat spiked 3.50 percent, Indocement shed 0.71 percent, Semen Indonesia soared 5.72 percent, Indofood Suskes fell 0.40 percent, Aneka Tambang accelerated 2.23 percent, Vale Indonesia climbed 1.70 percent, Timah advanced 1.32 percent and Bank Negara Indonesia and Bumi Resources were unchanged.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Monday, extending gains from the previous session.

The Dow added 358.51 points or 1.51 percent to end at 24,133.78, while the NASDAQ gained 95.64 points or 1.11 percent to 8,730.16 and the S&P 500 rose 41.74 points or 1.47 percent to 2,878.48.

The strength on Wall Street came after New York Governor Andrew Cuomo announced plans for a phased reopening of his state's economy. Cuomo suggested the first phase, which involves low risk businesses in the manufacturing and construction sectors, could begin shortly after New York's stay-at-home order expires on May 15.

Buying interest was also generated amid optimism about additional stimulus ahead of Federal Reserve and European Central Bank meetings later this week.

Crude oil prices tanked on Monday amid mounting fears that production cuts might not be enough to counter the huge fall in demand amid the coronavirus pandemic. West Texas Intermediate Crude oil futures for June ended down $4.16 or 24.6 percent at $12.78 a barrel.