The Indonesia stock market has closed lower now in five consecutive trading days, giving away more than 190 points or 5 percent in that span. The Jakarta Composite Index finished just above the 3,940-point plateau, and now traders figure to go bargain hunting when the market opens on Tuesday.
The global forecast for the Asian markets is cautiously optimistic after many of the regional bourses were brutally oversold last week - although the bargain hunting may be limited by persistent concerns from Europe. Spain may see another economic contraction in the second quarter of this year, Economy Minister Luis De Guindos reportedly said on Monday. The minister also denied that Spain needs any kind of external aid for its banking sector. The European and U.S. markets were higher on Monday and the Asian markets are expected to open in similar fashion.
The JCI finished sharply lower on Monday following the four-day weekend holiday for the Ascension, with a sharp decline in resource stocks causing the most damage.
For the day, the index plunged 40.45 points or 1.01 percent to finish at 3,940.11 after trading between 3,907.51 and 3,958.47.
Among the decliners, Medco Energi Internasional shed 2 percent, while Elnusa dropped 3.4 percent, Perusahaan Gas Negara plummeted 5.7 percent and Vale Indonesia slid 4 percent.
The lead from Wall Street is upbeat as stocks saw significant strength on Monday, regaining some ground after falling to a four-month low on Friday. The markets benefited from bargain hunting but remain sharply lower for the month of May. The Dow ended a six-session losing streak, although it still marked just its second gain in fourteen sessions.
Trading activity was subdued, as lingering concerns about Europe and a lack of major U.S. economic data kept some traders on the sidelines. While reports on home sales, durable goods orders, and consumer sentiment will be in focus later this week along with earnings news from Hewlett-Packard (HPQ), Dell (DELL), and Best Buy (BBY), trading activity may remain light.
Among individual stocks, American Eagle Outfitters (AEO) posted a strong gain after the apparel retailer announced plans to exit its children's business 77kids. Shares of Yahoo (YHOO) also ended the day higher after the online media giant announced that it is selling up to half of its stake in Alibaba back to the Chinese e-commerce company for about $7.1 billion.
Meanwhile, Lowe's (LOW) posted a steep loss after the home improvement retailer reported better than expected first quarter results but lowered its full year earnings guidance. Shares of Facebook (FB) also came under pressure, with the social media giant tumbling by 11 percent following its glitch-plagued debut on Friday.
The major averages saw further upside going into the close, ending the session just off their highs. The Dow rose 135.10 points or 1.1 percent to finish at 12,504.48, while the NASDAQ jumped 68.42 points or 2.5 percent to end at 2,847.21 and the S&P 500 climbed 20.77 points or 1.6 percent to 1,315.99.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.