Indonesia Stock Market Tipped To Open Under Pressure

The Indonesia stock market on Monday snapped the two-day slide in which it had stumbled more than 55 points or 0.9 percent. The Jakarta Composite Index now rests just above the 6,100-point plateau although it's expected to turn lower again on Tuesday.

The global forecast for the Asian markets is soft, with several regional bourses ripe for profit taking, while an uptick in coronavirus cases may fuel the weak sentiment. 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 higher on Monday following gains from the financial shares, resource stocks, telecoms and cement companies.

For the day, the index soared 125.82 points or 2.10 percent to finish at the daily high of 6,104.90 after trading as low as 5,929.05.

Among the actives, Bank Danamon Indonesia added 1.91 percent, while Bank Mandiri climbed 2.77 percent, Bank CIMB Niaga collected 2.51 percent, Bank Negara Indonesia jumped 3.24 percent, Bank Central Asia perked 0.96 percent, Indosat skyrocketed 14.85 percent, Telkom Indonesia accelerated 5.44 percent, Indocement rose 0.17 percent, Semen Indonesia advanced 1.21 percent, Indofood Suskes shed 0.36 percent, Astra International improved 3.32 percent, Astra Agro Lestari rallied 6.09 percent, Aneka Tambang soared 13.18 percent, Vale Indonesia surged 7.84 percent, Timah spiked 8.75 percent, Bukit Asam dropped 0.71 percent, Perusahaan Gas plummeted 6.95 percent and Bumi Resources gained 2.78 percent.

The lead from Wall Street is broadly negative as stocks shook off a steady start on Monday and headed sharply lower as the day progressed, cutting into recent gains.

The Dow tumbled 382.59 points or 1.25 percent to finish at 30,223.89, while the NASDAQ dropped 189.83 points or 1.47 percent to end at 12,698.45 and the S&P 500 sank 55.42 points or 1.48 percent to close at 3,700.65.

Upward momentum to start the New Year contributed to the initial strength on Wall Street, although buying interest waned shortly after the open. The subsequent pullback partly reflected profit taking after the Dow and the S&P 500 reached new record intraday highs.

Traders also were reluctant to push stocks higher amid uncertainty ahead of two key Senate runoffs in Georgia later today. Their outcome will determine which party controls the Senate and could have a major impact on what President-elect Joe Biden is able to accomplish.

The sharp pullback reflected concerns about the recent spike in coronavirus cases in several parts of the world, with a new strain of the virus being detected in the U.S. for the first time. Other countries, including the United Kingdom and Japan, are taking strong lockdown measures.

On the U.S. economic front, the Commerce Department reported a continued increase in construction spending in November.

Closer to home, Indonesia will release November retail sales data later today; in October, sales plummeted 14.9 percent on year.

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