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More Selling Pressure Likely For Indonesia Bourse

The Indonesia stock market has moved lower in consecutive trading days, surrendering more than 175 points or 3 percent in that span. The Jakarta Composite Index now rests just above the 5,800-point plateau and it may extend its losses on Tuesday.

The global forecast for the Asian markets suggests a sharply lower open due to coronavirus fears, although some bargain hunting may take hold as the day progresses. The European and U.S. bourses were firmly in the red and the Asian markets are expected to at least open in similar fashion.

The JCI finished sharply lower on Monday, driven deep into the red by growing fears over the coronavirus.

For the day, the index skidded 75.21 points or 1.28 percent to finish at 5,807.05 after trading between 5,787.92 and 5,863.12.

Among the actives, Bank Danamon Indonesia plunged 4.92 percent, while Bank Mandiri lost 1.58 percent, Bank Central Asia and Indosat both skidded 1.36 percent, Bank Negara Indonesia tumbled 2.57 percent, Bank Rakyat Indonesia fell 0.44 percent, Indocement plummeted 4.07 percent, Semen Indonesia retreated 3.02 percent, Aneka Tambang declined 2.14 percent, Vale Indonesia slid 1.63 percent, Timah lost 2.19 percent and Indofood Suskes and Bumi Resources were unchanged.

The lead from Wall Street is brutal as stocks opened sharply lower on Monday and the losses accelerated as the day progressed.

The Dow fell 1,031.61 points or 3.56 percent to end at 27,960.80, while the NASDAQ lost 355.31 points or 3.71 percent to 9,221.28 and the S&P sank 111.86 points or 3.35 percent to 3,225.89.

The sell-off on Wall Street reflected concerns about the spread of the coronavirus amid a spike in the number of confirmed cases outside of China.

Traders shrugged off concerns about the virus earlier this month, helping propel stocks to new record highs amid optimism the outbreak would quickly be contained. But the continued spread of the virus along with several companies warning about the financial impact seems to have traders reassessing their positions.

Gold stocks were among the few groups that bucked the downtrend as the safe haven precious metal for April delivery soared $27.80 to $1,676.60 an ounce.

Crude oil prices plunged sharply on Monday amid rising concerns for the outlook for energy demand due to the rapidly spreading coronavirus outside China. West Texas Intermediate Crude oil futures for April ended down $1.95 or 3.7 percent at $51.43 a barrel.

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