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Indonesia Stock Market May Extend Monday's Losses

The Indonesia stock market turned lower again on Monday, one session after it had ended the four-day losing streak in which it had stumbled more than 800 points or 18.5 percent. The Jakarta Composite Index now rests just beneath the 3,990-point plateau and it's looking at another red light for Tuesday's trade.

The global forecast for the Asian markets remains negative on concerns about the effect of the coronavirus on the global economy. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The JCI finished sharply lower on Monday following losses from the financial shares, resource stocks and cement companies.

For the day, the index tumbled 205.43 points or 4.90 percent to finish at 3,989.52 after trading between 3,975.19 and 4,194.94.

Among the actives, Bank Danamon Indonesia shed 2.84 percent, while Bank Mandiri retreated 6.95 percent, Bank Central Asia sank 6.44 percent, Bank Negara Indonesia declined 6.87 percent, Bank Rakyat Indonesia surrendered 6.76 percent, Indosat tumbled 6.91 percent, Indocement skidded 6.97 percent, Semen Indonesia tanked 6.74 percent, Indofood Suskes dropped 6.96 percent, Aneka Tambang plunged 6.95 percent, Vale Indonesia was down 3.97 percent, Timah plummeted 6.84 percent and Bumi Resources was unchanged.

The lead from Wall Street is soft with a dose of volatility as stocks saw wild swings again on Monday. The NASDAQ peeked into positive territory a couple of times, but all three major averages finished in the red.

The Dow sank 754.38 points or 3.93 percent to finish at 18,419.60, while the NASDAQ lost 56.67 points or 0.82 percent to 6,822.85 and the S&P 500 fell 86.44 points or 3.75 percent to 2,21848.

After opening sharply lower, the markets got a lift when the Federal Reserve announced extensive new measures to support the economy - saying that it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.

The measures include an unlimited expansion of the Fed's asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities in unspecified large amounts.

But the markets resumed their downward march in afternoon trade as the virus continues to spread.

Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. West Texas Intermediate Crude oil futures for May ended up $0.73 or 3.2 percent at $23.36 a barrel.

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