Rebound Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market headed south again on Monday, one session after snapping the two-day slide in which it had dropped almost 140 points or 1.9 percent. The Jakarta Composite Index now sits just shy of the 7,465-point plateau although it's likely to see renewed support on Tuesday.

The global forecast for the Asian markets is positive on bargain hunting and optimism for an interest rate cut. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.

The JCI finished modestly lower on Monday as losses from the financial shares and cement companies were mitigated by support from the resource stocks.

For the day, the index sank 73.12 points or 0.97 percent to finish at 7,464.65 after trading between 7,448.04 and 7,560.06.

Among the actives, Bank CIMB Niaga slipped 0.29 percent, while Bank Mandiri collected 1.99 percent, Bank Danamon Indonesia retreated 1.61 percent, Bank Central Asia fell 0.30 percent, Bank Rakyat Indonesia sank 0.80 percent, Indosat Ooredoo Hutchison tanked 3.06 percent, Indocement declined 1.34 percent, Semen Indonesia tumbled 1.99 percent, Indofood Sukses Makmur skidded 1.18 percent, United Tractors jumped 1.98 percent, Astra International added 0.50 percent, Astra Agro Lestari shed 0.74 percent, Aneka Tambang climbed 1.04 percent, Vale Indonesia surged 5.90 percent, Timah rallied 1.51 percent and Bumi Resources, Bank Negara Indonesia and Energi Mega Persada were unchanged.

The lead from Wall Street is strong as the major averages opened solidly higher on Monday and closed in similar fashion, cutting into Friday's steep losses.

The Dow jumped 585.06 points or 1.34 percent to finish at 44,173.64, while the NASDAQ rallied 403.45 points or 1.95 percent to end at 21,053.58 and the S&P 500 gained 91.93 points or 1.47 percent to close at 6,329.94.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the recent sell-off, which saw the NASDAQ and the S&P 500 pull back well off their record highs.

The steep drop last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).

Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the buying interest. According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.

Crude oil continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel.

Closer to home, Indonesia will release Q2 numbers for gross domestic product later today, with forecasts suggesting an increase of 3.7 percent on quarter and 4.8 percent on year after slipping 098 percent on quarter and gaining 4.87 percent on year in the previous three months.