Slow Start Seen For Indonesia Stock Market

The Indonesia stock market on Tuesday ended the two-day winning streak in which it had advanced almost 90 points or 1.5 percent. The Jakarta Composite Index now sits just above the 6,675-point plateau and it's likely to be stuck in neutral again on Wednesday.

The global forecast for the Asian markets is mixed, with support from oil and financial stocks likely to be undercut by weakness from technology shares. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Tuesday as losses from the financials and cement stocks were mitigated by support from the resource stocks.

For the day, the index sank 45.51 points or 0.68 percent to finish at 6,677.88 after trading between 6,662.54 and 6,732.90.

Among the actives, Bank Danamon Indonesia tanked 2.36 percent, while Bank Negara Indonesia declined 2.44 percent, Bank Mandiri tumbled 2.72 percent, Bank Rakyat Indonesia skidded 1.64 percent, Indosat jumped 1.83 percent, Indocement surrendered 2.36 percent, Semen Indonesia plunged 4.20 percent, Indofood Suskes fell 0.38 percent, United Tractors retreated 1.52 percent, Astra International advanced 0.81 percent, Astra Agro Lestari rose 0.24 percent, Aneka Tambang climbed 1.27 percent, Vale Indonesia rose 0.21 percent, Timah spiked 1.54 percent, Bumi Resources spiked 2.90 percent and Bank CIMB Niaga, Bakrie Sumatera Plantations and Bank Central Asia were unchanged.

The lead from Wall Street remains inconsistent as the Dow and S&P spent Tuesday bouncing back and forth across the unchanged line before ending higher. The NASDAQ spent most of the session in the red and finished that way.

The Dow jumped 194.55 points or 0.55 percent to finish at 35,813.80, while the NASDAQ slipped 79.62 points or 0.50 percent to close at 15,775.14 and the S&P 500 rose 7.76 points or 0.17 percent to end at 4,690.70.

The tech-heavy NASDAQ pulled back further off the record intraday high set in early trading on Monday, as a continued increase in treasury yields weighed on high-growth tech stocks.

Yields have moved notably higher since President Joe Biden announced his intention to nominate Jerome Powell for a second term as Fed Chair. With the upward move, the yield on the benchmark ten-year note ended at its highest closing level in a month.

On the other hand, the Dow benefited from strong gains by financial giants Goldman Sachs (GS) and JPMorgan Chase (JPM).

Crude oil futures settled sharply higher on Tuesday, rebounding strongly from earlier losses over the outlook for energy demand due to rising coronavirus cases in Europe, and plans by the U.S. to release oil from the Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for January still ended higher by $1.75 or 2.3 percent at $78.50 a barrel.

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