More Pain Predicted For Indonesia Stock Market

The Indonesia stock market has moved lower in consecutive trading days, surrendering more than 100 points or 1.6 percent along the way. The Jakarta Composite Index now rests just above the 6,025-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is negative on concerns for overall economic growth amid the latest coronavirus wave. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index tumbled 86.38 points or 1.41 percent to finish at 6,026.02 after trading between 6,001.58 and 6,123.76.

Among the actives, Bank Danamon Indonesia tanked 3.01 percent, while Bank CIMB Niaga tumbled 2.44 percent, Bank Negara Indonesia lost 1.39 percent, Bank Central Asia was down 1.98 percent, Bank Rakyat Indonesia sank 2.10 percent, Indosat surrendered 3.36 percent, Indocement plummeted 5.48 percent, Semen Indonesia cratered 4.20 percent, Indofood Suskes skidded 1.20 percent, United Tractors plunged 3.02 percent, Astra International slid 1.87 percent, Astra Agro Lestari dipped 0.29 percent, Aneka Tambang declined 1.28 percent, Vale Indonesia dropped 1.09 percent, Timah surrendered 3.00 percent, Bumi Resources retreated 1.79 percent and Bank Mandiri was unchanged.

The lead from Wall Street suggests mild consolidation as the major averages opened lower on Wednesday and largely stayed that was throughout the session, ending with modest losses.

The Dow shed 68.93 points or 0.20 percent to finish at 35,031.07, while the NASDAQ sank 87.69 points or 0.57 percent to close at 15,286.64 and the S&P 500 fell 5.96 points or 0.13 percent to end at 4,514.07.

The weakness on Wall Street partly reflected concerns the rapid spread of the delta variant of the coronavirus may slow the global economic recovery.

Worries about the Federal Reserve scaling back its asset purchases also contributed to the selling pressure. The lower close by stocks also came after the Federal Reserve's Beige Book said U.S. economic growth downshifted slightly to a moderate pace in early July through August.

The Beige Book also said inflation was reported to be steady at an elevated pace, as half of the districts characterized the pace of price increases as strong, while half described it as moderate.

Crude oil futures settled higher on Wednesday as prices rose on reports of slow progress in the restoration of crude output in the Gulf of Mexico. West Texas Intermediate Crude oil futures for October ended up $0.95 or 1.4 percent at $69.30 a barrel.

Closer to home, Indonesia will provide July figures for retail sales later today; in June, sales were up 2.5 percent on year.

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