Soft Start Seen For Indonesia Stock Market

The Indonesia stock market turned lower again on Monday, one session after snapping the two-day slide in which it had fallen more than 40 points or 0.6 percent. The Jakarta Composite Index now rests just above the 6,690-point plateau and it's expected to open to the downside again on Tuesday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished slightly lower on Monday following losses from the financials, cement companies and resource stocks.

For the day, the index dipped 10.19 points or 0.15 percent to finish at 6,691.12 after trading between 6,689.28 and 6,725.02.

Among the actives, Bank Danamon Indonesia shed 0.42 percent, while Bank CIMB Niaga lost 0.51 percent, Bank Negara Indonesia slid 0.35 percent, Bank Central Asia weakened 0.65 percent, Bank Rakyat Indonesia eased 0.24 percent, Indosat retreated 1.59 percent, Indocement dipped 0.23 percent, Semen Indonesia skidded 0.70 percent, Indofood Suskes fell 0.39 percent, United Tractors declined 1.69 percent, Astra International and Bakrie Sumatera Plantations both slumped 0.88 percent, Energi Mega Persada stumbled 0.98 percent, Astra Agro Lestari sank 0.75 percent, Aneka Tambang was down 0.45 percent, Bumi Resources surrendered 1.47 percent and Vale Indonesia, Timah and Bank Mandiri were unchanged.

The lead from Wall Street is mostly soft as the major averages opened sharply lower on Monday. They showed improvement as the session progressed, with the NASDAQ creeping up over the unchanged line.

The Dow dropped 162.79 points or 0.45 percent to finish at 36,068.87, while the NASDAQ rose 6.93 points or 0.05 percent to close at 14,942.83 and the S&P 500 dipped 6.74 points or 0.14 percent to end at 4,670.29.

The early weakness on Wall Street reflected lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood the Federal Reserve will raise interest rates in the near future.

Treasury yields have moved sharply higher in recent sessions, with the yield on the benchmark ten-year note reaching its highest levels since January of 2020.

The jump in yields comes amid a more hawkish tone from the Fed after the minutes of the central bank's latest meeting indicated plans to accelerate monetary policy normalization.

Crude oil prices drifted lower Monday on concerns about the outlook for energy demand due to the rapid surge in the Omicron variant of the coronavirus across the globe. A firm dollar amid rising prospects for a series of interest rate hikes weighed as well on crude oil prices. West Texas Intermediate Crude futures for February slipped $0.67 or 0.9 percent at $78.23 a barrel.

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