Rebound Expected For Indonesia Stock Market

The Indonesia stock market on Monday halted the four-day winning streak in which it had advanced almost 110 points or 1.9 percent. The Jakarta Composite Index now rests just above the 5,950-point plateau although it may bounce higher again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on the belief the coronavirus will soon be eliminated. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished modestly lower on Monday following losses from the financial shares, resource stocks and cement companies.

For the day, the index fell 47.52 points or 0.79 percent to finish at 5,952.08 after trading between 5,937.38 and 5,996.47.

Among the actives, Bank Danamon Indonesia plunged 4.47 percent, while Bank Central Asia collected 0.37 percent, Bank Negara Indonesia shed 0.34 percent, Bank Rakyat Indonesia skidded 1.10 percent, Indosat plummeted 4.64 percent, Indocement retreated 1.47 percent, Semen Indonesia lost 0.40 percent, Indofood Suskes declined 1.27 percent, Bumi Resources tumbled 1.89 percent, Aneka Tambang was down 1.37 percent, Vale Indonesia sank 1.51 percent, Timah cratered 3.42 percent and Bank Mandiri was unchanged.

The lead from Wall Street is positive as stocks shook off early weakness on Monday and moved higher as the day progressed.

The Dow added 174.31 points or 0.60 percent to end at 29,276.82, while the NASDAQ rose 107.88 points or 1.13 percent to 9,628.39 and the S&P 500 gained 24.38 points or 0.73 percent to 3,352.09.

The strength on Wall Street came as traders returned to ignoring concerns about the economic impact of the deadly coronavirus outbreak. The Chinese government has revealed that a total of 40,171 cases of coronavirus have been confirmed, with 908 people dying from the disease.

Traders seemed reassured by Chinese President Xi Jinping’s pledge to win the fight against the coronavirus outbreak, adding that China will speed up the development of drugs aimed at treating the deadly pneumonia-like virus.

Crude oil prices declined sharply on Monday amid rising concerns about the global economy and the outlook for energy demand due to the coronavirus outbreak. West Texas Intermediate Crude oil futures ended down $0.75 or 1.5 percent at $49.57 a barrel, the lowest settlement for a front-month contract since early January 2019.

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