(RTTNews) - The Indonesia stock market has moved lower in six straight sessions, sinking almost 820 points or 11.5 percent in that span. The Jakarta Composite Index now rests just above the 6,370-point plateau and it's expected to open under water again on Wednesday.
The global forecast for the Asian markets is weak on continued concerns over the conflict in the Middle East and on the outlook got interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The JCI finished sharply lower again on Tuesday following losses from the cement, resource, telecom and food sectors, while the financial were mixed.
For the day, the index plummeted 228.56 points or 3.46 percent to finish at 6,370.68 after trading between 6,323.26 and 6,635.13.
Among the actives, Bank CIMB Niaga tumbled 2.07 percent, while Bank Danamon Indonesia rallied 3.76 percent, Bank Negara Indonesia collected 0.26 percent, Bank Central Asia tanked 2.86 percent, Bank Rakyat Indonesia shed 0.65 percent, Indosat Ooredoo Hutchison stumbled 3.48 percent, Indocement skidded 1.02 percent, Semen Indonesia dropped 4.73 percent, Indofood Sukses Makmur slumped 1.12 percent, United Tractors surrendered 3.68 percent, Astra International sank 0.83 percent, Energi Mega Persada crashed 6.39 percent, Astra Agro Lestari was down 6.25 percent, Aneka Tambang contracted 3.16 percent, Vale Indonesia cratered 7.48 percent, Timah plunged 12.90 percent, Bumi Resources plummeted 9.71 percent and Bank Mandiri was unchanged.
The lead from Wall Street is negative as the major averages opened lower on Tuesday and remained in the red throughout the trading day.
The Dow slumped 322.24 points or 0.65 percent to finish at 49,363.88, while the NASDAQ tumbled 220.03 points or 0.84 percent to close at 25,870.71 and the S&P 500 sank 49.44 points or 0.67 percent to end at 7,353.61.
The weakness on Wall Street came amid an extended surge by treasury yields, with the yield on the benchmark ten-year note jumping to its highest levels since January 2025.
Concerns about elevated crude oil prices leading to a sustained acceleration in the pace of inflation continued to drive yields higher and increase the possibility of an interest rate hike.
Crude oil prices took a breather on Tuesday following news the U.S. is halting its planned attacks on Iran, although the Strait of Hormuz remains closed. West Texas Intermediate crude for June was down $0.07 or 0.1 percent at $108.59 per barrel.
Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting and then announce its decision on interest rates. The benchmark lending rate (4.75 percent), deposit facility rate (3.75 percent) and lending facility rate (5.50 percent) are all expected to be unchanged.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
