Lower Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished higher in two of three trading days since the end of the seven-day losing streak in which it had tumbled more than 550 points or 5.1 percent. The Jakarta Composite Index now rests just above the 6,970-point plateau although it's expected to open in the red on Tuesday.

The global forecast for the Asian markets is negative amidst rising hostilities in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The JCI finished slightly higher on Monday following gains from the financial shares and resource stocks.

For the day, the index gained 15.15 points or 0.22 percent to finish at 6,971.95 after trading between 6,946.06 and 7,069.69.

Among the actives, Bank CIMB Niaga dropped 0.90 percent, while Bank Mandiri collected 0.68 percent, Bank Danamon Indonesia rose 0.24 percent, Bank Negara Indonesia spiked 3.23 percent, Bank Central Asia improved 0.85 percent, Bank Rakyat Indonesia and Astra International both vaulted 1.67 percent, Indosat Ooredoo Hutchison soared 4.26 percent, Indocement retreated 1.44 percent, Semen Indonesia climbed 1.00 percent, Indofood Sukses Makmur rallied 2.96 percent, United Tractors perked 0.17 percent, Energi Mega Persada added 0.59 percent, Astra Agro Lestari jumped 2.16 percent, Aneka Tambang elevated 1.60 percent, Vale Indonesia gained 0.36 percent, Timah surged 6.15 percent and Bumi Resources tumbled 4.17 percent.

The lead from Wall Street is weak as the major averages opened mixed on Monday but quickly headed south and finished solidly in the red.

The Dow tumbled 557.37 points or 1.13 percent to finish at 48,941.90, while the NASDAQ dropped 46.64 points or 0.19 percent to close at 25,067.80 and the S&P 500 sank 29.37 points or 0.41 percent to end at 7,200.75.

The weakness that emerged on Wall Street came amid a substantial increase by the price of crude oil after a social media post from the United Arab Emirates's Defense Ministry said four cruise missiles launched from Iran were detected toward various areas across the country.

A report from Reuters indicating a fire broke out at a major oil industry zone in the U.A.E. following an Iranian drone attack also added to concerns about a re-escalation of the Middle East conflict.

Iranian state media also claimed the Islamic Revolutionary Guard Corps hit a U.S. warship with two missiles, although U.S. Central Command denied the report and said, "No U.S. Navy ships have been struck."

Crude oil prices skyrocketed on Monday as the Strait of Hormuz blockade continues to hold oil transit, despite the ongoing diplomatic efforts to end the U.S.-Iran war. West Texas Intermediate crude for June delivery was up $4.00 or 3.92 percent at $105.94 per barrel.