Losing Streak May Continue For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in two straight sessions, slumping almost 75 points or 1 percent in that span. The Jakarta Composite Index now rests just beneath the 7,560-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets remains grim thanks to ongoing geopolitical concerns in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The JCI finished modestly lower on Tuesday following mixed performances from the cement and resource companies, while the financial sector offered support.

For the day, the index sank 34.73 points or 0.46 percent to finish at 7,559.38 after trading between 7,511.83 and 7,568.99.

Among the actives, Bank CIMB Niaga climbed 1.07 percent, while Bank Mandiri jumped 1.73 percent, Bank Danamon Indonesia skyrocketed 18.46 percent, Bank Negara Indonesia vaulted 1.63 percent, Bank Central Asia collected 0.39 percent, Bank Rakyat Indonesia elevated 1.21 percent, Indocement strengthened 1.38 percent, Semen Indonesia fell 0.42 percent, Indofood Sukses Makmur advanced 1.08 percent, United Tractors improved 1.19 percent, Astra International shed 0.39 percent, Energi Mega Persada added 0.55 percent, Aneka Tambang lost 0.50 percent, Vale Indonesia rallied 1.84 percent, Timah soared 3.45 percent, Bumi Resources sank 0.83 percent and Indosat Ooredoo Hutchison and Astra Agro Lestari were unchanged.

The lead from Wall Street is soft as the major averages opened higher on Tuesday but quickly turned lower and remained in the red for the remainder of the day, ending at session lows.

The Dow dropped 293.18 points of 0.59 percent to finish at 49,149.38, while the NASDAQ sank 144.43 points or 0.59 percent to end at 24,259.96 and the S&P 500 lost 45.13 points or 0.63 percent to close at 7,064.01.

The weakness that emerged on Wall Street came as the price of crude oil has moved sharply higher over the course of the day.

Crude oil prices continued to surge on Tuesday as the ongoing shutdown of the Strait of Hormuz kept supply disruption concerns alive. West Texas Intermediate crude for May delivery was up $3.99 or 4.45 percent at $93.60 per barrel.

Earlier in the session, the markets benefitted from positive corporate earnings news from the likes of UnitedHealth (UNH) and homebuilder D.R. Horton (DHI), both of which handily beat expectations.

Early buying interest was also generated in reaction to a Commerce Department report showing retail sales in the U.S. surged by more than expected in the month of March.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting this morning and then announce its decision on interest rates; the benchmark lending rate (4.75 percent), deposit facility rate (3.75 percent) and the lending facilities rate (5.50 percent) are all expected to be unchanged.