Indonesia Bourse May Extend Monday's Losses

(RTTNews) - The Indonesia stock market headed south again on Monday, one session after ending the two-day slide in which it had stumbled more than 70 points or 0.9 percent. The Jakarta Composite Index now rests just beneath the 7,600-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is soft thanks to recent developments in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The JCI finished modestly lower on Monday following losses from the cement and resource stocks, while the financial sector was mixed.

For the day, the index sank 39.89 points or 0.52 percent to finish at 7,594.11 after trading between 7,570.42 and 7,692.15.

Among the actives, Bank CIMB Niaga collected 0.54 percent, while Bank Danamon Indonesia vaulted 1.56 percent, Bank Negara Indonesia skidded 1.08 percent, Bank Central Asia improved 0.78 percent, Bank Rakyat Indonesia rose 0.29 percent, Indosat Ooredoo Hutchison retreated 1.46 percent, Indocement declined 1.36 percent, Semen Indonesia tanked 3.63 percent, Indofood Sukses Makmur sank 0.72 percent, United Tractors fell 0.32 percent, Astra International shed 0.39 percent, Energi Mega Persada rallied 2.53 percent, Astra Agro Lestari added 0.60 percent, Aneka Tambang tumbled 1.47 percent, Vale Indonesia slumped 1.45 percent, Timah surrendered 2.84 percent, Bumi Resources dropped 2.42 percent and Bank Mandiri was unchanged.

The lead from Wall Street is weak as the major averages opened mixed on Monday but quickly turned lower and ended in the red, although off of session lows.

The Dow dipped 4.87 points or 0.01 percent to finish at 49,442.56, while the NASDAQ shed 64.09 points or 0.26 percent to close at 24,404.39 and the S&P 500 sank 16.92 points or 0.24 percent to end at 7,109.14.

The modest weakness on Wall Street came amid concerns about the re-escalation of tensions between the U.S. and Iran following the latest developments in the Middle East.

Over the weekend, Iran once again closed the Strait of Hormuz and purportedly fired on tankers in the vital waterway, blaming the U.S. blockade of Iranian ports for the moves.

The latest threats combined with news that U.S. forces have seized an Iranian-flagged cargo ship in the Gulf of Oman, contributed to a significant rebound by the price of crude oil.

Crude oil prices skyrocketed on Monday after the U.S. seized an Iranian cargo ship and Iran vowed to retaliate, renewing supply-related concerns. West Texas Intermediate crude for May delivery was up $5.54 or 6.61 percent at $89.39 per barrel.