Lower Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Tuesday ended the brutal four-day losing streak in which it had plummeted more than 850 points or 15 percent. The Jakarta Composite Index now sits just beneath the 5,750-point plateau although it may open under pressure again on Wednesday.

The global forecast for the Asian markets is negative as hostilities in the Middle East tick higher. The European and U.S. markets were mostly in the red and the Asin bourses are likely to follow that lead.

The JCI finished sharply higher on Tuesday with bargain hunting across the board, especially among the financial and resource sectors.

For the day, the index skyrocketed 404.51 points or 7.57 percent to finish at the daily high of 5,746.65 after moving as low as 5,318.15.

Among the actives, Bank CIMB Niaga collected 3.40 percent, while Bank Mandiri soared 10.24 percent, Bank Danamon Indonesia accelerated 5.59 percent, Bank Negara Indonesia jumped 8.64 percent, Bank Central Asia expanded 6.19 percent, Bank Rakyat Indonesia strengthened 7.72 percent, Indosat Ooredoo Hutchison improved 1.85 percent, Semen Indonesia advanced 7.74 percent, Indofood Sukses Makmur gained 4.64 percent, United Tractors increased 4.79 percent, Astra International spiked 7.11 percent, Energi Mega Persada skyrocketed 24.00 percent, Astra Agro Lestari rose 2.12 percent, Antam surged 13.83 percent, Vale Indonesia vaulted 11.08 percent, Timah climbed 12.37 percent, Bumi Resources was up 12.31 percent and Indocement was unchanged.

The lead from Wall Street is weak as the major averages opened higher but quickly tailed off into the red, although the Dow managed to creep back above water by the end of the day.

The Dow added 86.10 points or 0.17 percent to finish at 50,872.11, while the NASDAQ slumped 250.84 points or 0.97 percent to end at 25,678.82 and the S&P 500 slipped 19.08 points or 0.26 percent to end at 7,386.65.

The notable pullback by the NASDAQ came amid renewed weakness among tech stocks, which had regained some ground on Monday following last Friday's sell-off.

Semiconductor stocks helped lead the sector lower before rebounding, with the Philadelphia Semiconductor Index tumbling by 1.9 percent, while computer hardware, networking and software stocks also moved significantly lower.

In economic news, the National Association of Realtors released a report showing existing home sales in the U.S. spiked by much more than anticipated in the month of May.

Crude oil prices plunged on Tuesday after Israel and Iran halted their exchange of attacks. West Texas Intermediate crude for July delivery was down $3.11 or 3.41 percent at $88.19 per barrel.

However, sentiment took a hit after the markets closed as the U.S. launched a fresh attack on Iran in response to the loss of a helicopter over the Strait of Hormuz.