Indonesia Stock Market May Extend Losing Streak

(RTTNews) - The Indonesia stock market has moved lower in back-to-back sessions, slipping almost 50 points or 0.8 percent along the way. The Jakarta Composite Index now rests just beneath the 7,000-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is mixed to lower, with support from oil stocks likely offset by weakness from technology and retail companies. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Tuesday following losses from the resource and cement stocks, while the financials were mixed.

For the day, the index lost 19.60 points or 0.28 percent to finish at 6,996.46.

Among the actives, Bank CIMB Niaga advanced 0.99 percent, while Bank Negara Indonesia rose 0.31 percent, Bank Central Asia shed 0.68 percent, Bank Mandiri declined 1.22 percent, Bank Rakyat Indonesia collected 0.47 percent, Indosat rallied 2.64 percent, Indocement retreated 1.28 percent, Semen Indonesia tanked 3.07 percent, Indofood Suskes added 0.69 percent, United Tractors accelerated 2.05 percent, Astra International gained 0.75 percent, Bakrie Sumatera Plantations slumped 1.64 percent, Astra Agro Lestari sank 0.77 percent, Aneka Tambang tumbled 1.32 percent, Vale Indonesia skidded 1.27 percent, Bumi Resources plummeted 4.48 percent and Bank Danamon Indonesia, Energi Mega Persada and Timah were unchanged.

The lead from Wall Street is broadly negative as the major averages shook off early gains and quickly turned lower, finishing the day near session lows.

The Dow tumbled 491.27 points or 1.56 percent to finish at 30,946.99, while the NASDAQ plunged 343.01 points or 2.98 percent to close at 11,181.54 and the S&P 500 slumped 78.56 points or 2.01 percent to end at 3,821.55.

The initial strength on Wall Street partly reflected a positive reaction to news that China has cut quarantine times for international travelers in a big step toward easing Covid-19 controls.

But buying interest waned shortly after the start of trading, however, with lingering concerns about a potential recession continuing to weigh on the markets.

Negative sentiment may also have been generated in reaction to a report from the Conference Board showing U.S. consumer confidence deteriorated to its lowest level in over a year in June.

Crude oil prices rose sharply on Tuesday, extending recent gains after Saudi Arabia and the United Arab Emirates indicated that they can barely increase oil production. West Texas Intermediate crude oil futures for August ended higher by $2.19 or 2 percent at $111.76 per barrel.