Indonesia Stock Market May Extend Monday's Gains

(RTTNews) - The Indonesia stock market bounced higher again on Monday, one session after snapping the two-day winning streak in which it had risen almost 25 points or 0.3 percent. The Jakarta Composite Index now sits just above the 6,910-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on bargain hunting after a rough couple of sessions. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The JCI finished modestly higher on Monday following gains from the cement and resource stocks, while the financials came in mixed. For the day, the index gained 30.19 points or 0.44 percent to finish at the daily high of 6,910.17 after trading as low as 6,823.75.

Among the actives, Bank CIMB Niaga lost 0.56 percent, while Bank Mandiri collected 0.42 percent, Bank Negara Indonesia jumped 1.10 percent, Bank Central Asia shed 0.53 percent, Indosat Ooredoo Hutchison fell 0.27 percent, Indocement rallied 2.27 percent, Semen Indonesia jumped 1.86 percent, United Tractors strengthened 1.29 percent, Astra International improved 0.74 percent, Energi Mega Persada retreated 1.60 percent, Aneka Tambang added 0.50 percent, Vale Indonesia climbed 1.19 percent, Timah sank 0.55 percent, Bumi Resources surged 3.79 percent and Bank Danamon Indonesia, Astra Agro Lestari, Indofood Suskes and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is positive as the major averages opened lower on Monday; the NASDAQ and S&P 500 quickly bounced higher and stayed that way, while the Dow hugged the unchanged line throughout the session and finally finished on the green side.

The Dow added 26.23 points or 0.07 percent to finish at 35,307.63, while the NASDAQ jumped 143.48 points or 1.05 percent to close at 13,788.33 and the S&P 500 gained 25.67 points or 0.58 percent to end at 4,489.72.

The strength on Wall Street reflected bargain hunting after the NASDAQ and S&P 500 ended the previous session at their lowest closing levels in a month.

Overall trading activity has remained somewhat subdued, however, amid a lack of major U.S. economic data.

Oil prices dropped on Monday on concerns about the outlook for energy demand and a stronger dollar. West Texas Intermediate Crude oil futures for September ended lower by $0.68 or 0.8 percent at $82.51 a barrel.

Closer to home, Indonesia will release July data for imports, exports, trade balance and retail sales later today. Imports are predicted to tumbled 15.45 percent on year after dropping 18.35 percent in June. Exports are called lower by an annual 17.75 percent after plunging 21.18 percent in the previous month. The trade surplus is pegged at $2.53 billion, down from $3.46 billion a month earlier. Retail sales were down 4.5 percent on year in June.