Rally May Stall For Indonesia Stock Market

The Indonesia stock market has climbed higher in two straight sessions, rising almost 90 points or 1.5 percent along the way. The Jakarta Composite Index now sits just above the 6,720-point plateau although it may run out of steam on Tuesday.

The global forecast for the Asian markets is mixed to lower, with technology stocks expected to weigh - although support from crude oil prices should limit the downside. The European and U.S. markets were mixed and the Asian bourses figure to follow suit.

The JCI finished slightly higher on Monday following mixed performances from the financial shares and the resource stocks.

For the day, the index was up 3.12 points or 0.05 percent to finish at 6,723.39 after trading between 6,690.82 and 6,754.46.

Among the actives, Bank Danamon Indonesia rallied 2.42 percent, while Bank CIMB Niaga shed 0.48 percent, Bank Negara Indonesia spiked 2.14 percent, Bank Central Asia collected 0.67 percent, Bank Mandiri climbed 1.38 percent, Indosat skidded 1.09 percent, Indocement rose 0.22 percent, Semen Indonesia fell 0.28 percent, Indofood Suskes gathered 1.15 percent, United Tractors jumped 1.43 percent, Astra International lost 0.40 percent, Astra Agro Lestari dropped 0.96 percent, Aneka Tambang sank 0.84 percent, Vale Indonesia added 0.62 percent, Timah slid 0.31 percent, Energi Mega Persada jumped 1.74 percent and Bumi Resources and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is not encouraging as the major averages opened higher on Monday but tumbled late in the day, with only the Dow managing to barely hang on to positive territory.

The Dow rose 17.27 points or 0.05 percent to finish at 35,619.25, while the NASDAQ plunged 202.68 points or 1.26 percent to close at 15,854.76 and the S&P fell 15.02 points or 0.32 percent to end at 4,682.94.

The mixed close on Wall Street came after President Joe Biden announced his intent to nominate Jerome Powell for a second term as Federal Reserve Chair. The White House also revealed that Biden intends to nominate current Fed Governor Lael Brainard as Vice Chair of the Federal Reserve System.

While the re-nomination of Powell will give the Fed stability as it grapples with the economic recovery and elevated inflation, Brainard was seen as the more dovish choice.

Crude oil futures settled higher Monday despite rising concerns about the outlook for energy demand due to a surge in coronavirus cases in several countries. West Texas Intermediate Crude oil futures for December rose $0.81 or 1.1 percent at $76.75 a barrel.

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