More Pain Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in consecutive trading days, slipping more than 60 points or 0.8 percent along the way. The Jakarta Composite Index now rests just beneath the 7,020-point plateau and it's expected to open lower again on Tuesday.

The global forecast for the Asian markets is negative on trade concerns emanating from protests in China. The European and U.S. markets were solidly in the red and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly lower on Monday following mixed performances from the financial shares and the resource stocks.

For the day, the index shed 35.79 points or 0.51 percent to finish at 7,017.36.

Among the actives, Bank Danamon Indonesia tumbled 1.97 percent, while Bank Negara Indonesia eased 0.27 percent, Bank Central Asia collected 0.56 percent, Bank Mandiri shed 0.49 percent, Bank Rakyat Indonesia jumped 1.47 percent, Indosat Ooredoo Hutchison tanked 2.07 percent, Indocement rose 0.25 percent, Indofood Suskes sank 0.79 percent, United Tractors fell 0.34 percent, Astra International advanced 0.81 percent, Energi Mega Persada slumped 1.19 percent, Astra Agro Lestari dropped 0.90 percent, Aneka Tambang retreated 1.79 percent, Vale Indonesia improved 0.70 percent, Timah skidded 1.16 percent, Bumi Resources plunged 3.24 percent and Bank CIMB Niaga and Semen Indonesia were unchanged.

The lead from Wall Street is bleak as the major averages opened lower on Monday and the losses accelerated as the day progressed, closing near session lows.

The Dow plunged 497.57 points or 1.45 percent to finish at 33,849.46, while the NASDAQ tumbled 176.86 points or 1.58 percent to close at 11,049.50 and the S&P 500 slumped 62.18 points or 1.54 percent to end at 3,963.94.

Concerns about developments in China fueled the substantial pullback on Wall Street, as widespread protests against the Beijing's zero-Covid restriction policy broke out over the weekend.

The weakness on Wall Street may also have reflected lingering uncertainty about the outlook for interest rates ahead of next month's Federal Reserve meeting.

While the Fed is widely expected to slow the pace of interest rate hikes next month, the minutes of the central bank's early November meeting suggested some officials think rates will be to be raised higher than previously anticipated.

Crude oil prices shook off early weakness and moved higher on Monday amid speculation that OPEC will seriously consider a new production cut at its meeting later this week. West Texas Intermediate Crude oil futures for January gained $0.96 or 1.3 percent at $77.24 a barrel.