Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished higher in two straight sessions, gathering more than 50 points or 1 percent along the way. The Jakarta Composite Index now sits just beneath the 5,145-point plateau although it's likely to see selling pressure on Tuesday.

The global forecast for the Asian markets is broadly negative thanks to a renewed surge in coronavirus cases and lockdown measures around the globe. The European and U.S. markets were sharply lower and the Asian markets are tipped to open in similar fashion.

The JCI finished modestly higher on Monday following gains from the financials and mixed performances from the cement and resource stocks.

For the day, the index collected 31.86 points or 0.62 percent to finish at 5,144.05 after trading between 5,113.02 and 5,158.27.

Among the actives, Bank Mandiri soared 4.05 percent, while Bank CIMB Niaga collected 0.66 percent, Bank Rakyat Indonesia jumped 1.52 percent, Bank Central Asia gained 0.78 percent, Indosat skidded 1.46 percent, Indocement shed 0.60 percent, Semen Indonesia spiked 1.86 percent, United Tractors dropped 0.91 percent, Astra Agro Lestari added 0.72 percent, Aneka Tambang tanked 2.30 percent, Vale Indonesia tumbled 1.90 percent, Timah retreated 1.18 percent and Astra International, Bank Negara Indonesia, Indofood Suskes, Bank Danamon Indonesia and Bumi Resources were unchanged.

The lead from Wall Street is bleak as stocks opened firmly lower on Monday and saw the losses accelerate as the day progressed - extending last week's losses.

The Dow plummeted 649.93 points or 2.29 percent to finish at 27,685.64, while the NASDAQ dropped 189.34 points or 1.64 percent to end at 11,358.94 and the S&P 500 sank 64.42 points or 1.86 percent to close at 3,400.97.

The sell-off on Wall Street comes amid concerns about a record resurgence in coronavirus cases, while White House officials say the pandemic can't be controlled and the administration would instead focus on vaccines and therapeutics.

The spike in new coronavirus cases comes as lawmakers in Washington remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.

Adding to the negative sentiment, the Commerce Department reported an unexpected slump in new home sales last month.

Crude oil prices moved lower in response to the bad news, with West Texas Intermediate sinking $1.17 or 2.94 percent to $38.55.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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