Lower Open Called For Indonesia Stock Market
The Indonesia stock market has finished lower in two straight sessions, more than 90 points 1.3 percent along the way. The Jakarta Composite Index now rests just above the 7,125-point plateau and it's tipped to open in the red again on Tuesday.
The global forecast for the Asian markets continues to be soft on concerns about interest rates and the global economy. The European and U.S. markets were down again and the Asian markets, despite being badly oversold at this point, are expected to at least open in the red.
The JCI finished modestly lower on Monday as losses from the cement and resource stocks were tempered by support from the financial sector.
For the day, the index lost 51.08 points or 0.71 percent to finish at 7,127.50.
Among the actives, Bank Danamon Indonesia skidded 1.12 percent, while Bank Central Asia added 0.60 percent, Bank Mandiri collected 0.54 percent, Bank Rakyat Indonesia climbed 1.34 percent, Indosat Ooredoo Hutchison jumped 1.70 percent, Indocement dropped 0.99 percent, United Tractors surrendered 2.06 percent, Astra International tumbled 2.45 percent, Energi Mega Persada slumped 2.88 percent, Astra Agro Lestari shed 0.56 percent, Aneka Tambang tanked 3.43 percent, Vale Indonesia retreated 1.89 percent, Timah sank 0.71 percent, Bumi Resources plummeted 6.80 percent and Bank CIMB Niaga, Semen Indonesia, Indofood Suskes and Bank Negara Indonesia were unchanged.
The lead from Wall Street continues to be negative as the major averages were unable to hold early support on Monday, accelerating to the downside as the day progressed.
The Dow tumbled 329.60 points or 1.11 percent to finish at 29.260.81, while the NASDAQ dropped 65.00 points or 0.60 percent to close at 10.802.92 and the S&P 500 fell 38.19 points or 1.03 percent to end at 3,655.04.
A continued surge in the value of the U.S. dollar contributed to the weakness on Wall Street, with the greenback hitting a record high versus the British pound.
Concerns about the outlook for the global economy also continued to weigh on the markets amid worries the increases in interest rates around the world will lead to a recession. The Fed and other central banks have indicated they plan to continue raising rates in an effort to combat stubbornly elevated inflation.
The extended weakness on Wall Street also came amid a spike in treasury yields, with the yield on the benchmark 10-year note soaring to a 12-year high.
Crude oil prices tumbled to near nine-month lows on Monday, extending losses from the previous session amid rising concerns about the outlook for fuel demand due to increasing possibility of a global recession. West Texas Intermediate Crude oil futures for November ended lower by $2.03 or 2.6 percent at $76.71 a barrel.
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