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Continued Consolidation Called For Indonesia Stock Market

The Indonesia stock market returned sharply to the downside on Monday following its long break for Eid-ul-Fitr. The Jakarta Composite Index now rests just beneath the 6,931-point plateau and it's likely to open under pressure again on Tuesday.

The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index plummeted 319.16 points or 4.42 percent to finish at 6,909.75 after trading between 6,897.00 and 7,156.48.

Among the actives, Bank Danamon Indonesia shed 2.86 percent, while Bank CIMB Niaga lost 2.35 percent, Bank Negara Indonesia slumped 4.34 percent, Bank Central Asia plummeted 6.46 percent, Bank Mandiri tanked 6.98 percent, Bank Rakyat Indonesia plunged 6.98 percent, Indosat tumbled 6.79 percent, Indocement retreated 4.53 percent, Semen Indonesia declined 4.30 percent, Indofood Suskes fell 2.78 percent, United Tractors surrendered 3.47 percent, Astra International stumbled 6.93 percent, Energi Mega Persada skyrocketed 16.16 percent, Bakrie Sumatera Plantations soared 4.27 percent, Astra Agro Lestari sank 4.00 percent, Aneka Tambang skidded 2.69 percent, Vale Indonesia slid 1.71 percent, Timah dropped 3.77 percent and Bumi Resources surged 8.93 percent.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.

The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.

Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.

The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.

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