Indonesia Bourse May Cut Into Monday’s Losses

The Indonesia stock market turned sharply lower again on Monday, one session after ending the two-day plunge in which it had tumbled almost 750 points or 9 percent. The Jakarta Composite Index now sits just above the 7,920-point plateau although it’s likely to find renewed support on Tuesday.

The global forecast for the Asian markets is positive on decent economic data, although weakness among the oil stocks may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The JCI finished sharply lower on Monday following heavy losses among the resource and energy companies, while the financial and cement sectors were mixed.

For the day, the index crashed 406.88 points or 4.88 percent to finish at 7,922.73 after trading between 7,820.23 and 8,313.06.

Among the actives, Bank CIMB Niaga sank 0.83 percent, while Bank Mandiri fell 0.41 percent, Bank Danamon Indonesia retreated 1.57 percent, Bank Negara Indonesia rose 0.22 percent, Bank Central Asia rallied 2.70 percent, Bank Rakyat Indonesia collected 0.52 percent, Indosat Ooredoo Hutchison shed 0.45 percent, Indocement slumped 0.75 percent, Semen Indonesia surged 5.31 percent, Indofood Sukses Makmur vaulted 3.31 percent, United Tractors plunged 6.14 percent, Astra International skidded 1.18 percent, Energi Mega Persada cratered 15.00 percent, Astra Agro Lestari declined 1.69 percent, Aneka Tambang tanked 9.50 percent, Vale Indonesia crashed 8.14 percent, Timah dropped 8.33 percent and Bumi Resources plummeted 14.73 percent.

The lead from Wall Street is upbeat as the major averages opened flat but quickly tracked to the upside and spent the balance of the day in the green.

The Dow jumped 515.19 points or 1.05 percent to finish at 49,407.66, while the NASDAQ added 130.29 points or 0.56 percent to end at 23,592.11 and the S&P 500 gained 37.41 points or 0.54 percent to close at 6,976.44.

The strength on Wall Street followed the release of a report from the Institute for Supply Management showing manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January.

The markets saw continued strength after President Donald Trump announced that he has reached a trade deal with India.

But traders seemed somewhat reluctant to make more significant moves ahead of the release of the Labor Department’s closely watched monthly jobs report on Friday.

Crude oil prices tumbled on Monday as signs of de-escalation of the U.S.-Iran conflict reduced supply-output concerns in the Middle East, taking off the geopolitical risk premium. West Texas Intermediate crude for March delivery was down $3.28 or 5.03 percent at $61.93 per barrel.