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Indonesia Shares Tipped To Head South Again On Wednesday

The Indonesia stock market on Tuesday halted the two-day slide in which it had fallen more than 60 points or 1 percent. The Jakarta Composite Index now sits just above the 5,960-point plateau although it's expected to see renewed selling pressure on Wednesday.

The global forecast for the Asian markets is soft, with technology stocks and airlines expected to lead the way lower. The European markets were down and the U.S. bourses were mostly negative and the Asian markets are also tipped to open under pressure.

The JCI finished slightly higher on Tuesday as gains from the financials and resource stocks were capped by weakness from the cement companies.

For the day, the index rose 11.22 points or 0.19 percent to finish at 5,963.82 after trading between 5,932.32 and 5,974.68.

Among the actives, Bank Danamon Indonesia rallied 2.37 percent, while Bank Negara Indonesia advanced 0.90 percent, Bank Central Asia rose 0.16 percent, Bank Mandiri collected 0.83 percent, Bank Rakyat Indonesia improved 1.25 percent, Indosat skidded 1.20 percent, Indocement retreated 1.39 percent, Semen Indonesia declined 1.23 percent, Indofood Suskes climbed 1.54 percent, United Tractors accelerated 2.98 percent, Astra International gained 1.38 percent, Energi Mega Persada sank 0.87 percent, Astra Agro Lestari spiked 2.65 percent, Aneka Tambang jumped 3.97 percent, Vale Indonesia soared 6.78 percent, Timah surged 6.98 percent, Bumi Resources tanked 2.99 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street is mainly negative as the major averages opened Tuesday deep in the red and largely stayed that way, although the Dow managed to peak into the green at the close.

The Dow rose 19.80 points or 0.06 percent to finish at 34,133.03, while the NASDAQ plummeted 261 points or 1.88 percent to end at 13,633.50 and the S&P 500 lost 28.00 points or 0.67 percent to close at 4,164.66.

The weakness on Wall Street largely reflected a continued pullback by technology stocks, with traders cashing in on tech stocks that benefited from the coronavirus-induced lockdowns as more states continue to lift restrictions.

Additional selling pressure was generated in reaction to comments from Treasury Secretary Janet Yellen, who suggested interest rates may have to rise modestly to prevent the economy from overheating amid the recent spike in government spending.

In economic news, the Commerce Department said the U.S. trade deficit hit a new record high in March. The Commerce Department also said new orders for U.S. manufactured goods rebounded less than expected in March.

Crude oil prices moved sharply higher Tuesday, extending gains from previous session amid continued optimism about increased demand for fuel. West Texas Intermediate Crude oil futures for June ended higher by $1.20 or 1.9 percent at $65.69 a barrel.

Closer to home, Indonesia will release Q1 numbers for gross domestic product later today, with forecasts suggesting a decline of 1.04 percent on quarter and 0.74 percent on year. That follows the 0.42 percent quarterly decline and the 2.19 percent yearly drop in the three months prior.

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