Indonesia Bourse May Give Up Key Support At 7,000 Points

(RTTNews) - The Indonesia stock market has moved lower in two straight sessions, tumbling more than 265 points or 3.6 percent along the way. The Jakarta Composite Index now sits just beneath the 7,060-point plateau and it's expected to open to the downside again on Tuesday.

The global forecast for the Asian markets is bleak on continuing concerns about the health of the U.S. economy. The European and U.S. markets were sharply lower on Monday and the Asian bourses are expected to open in similar fashion again - although this selloff is quite overdone and may fade as the day progresses.

The JCI finished sharply lower in all sectors on Monday, spooked by concerns over the health of the U.S. economy.

For the day, the index plunged 248.47 points or 3.40 percent to finish at 7,059.65 after trading between 6,998.81 and 7,257.48. Among the actives, Bank CIMB Niaga retreated 4.59 percent, while Bank Mandiri slumped 3.31 percent, Bank Danamon Indonesia declined 3.53 percent, Bank Negara Indonesia sank 2.75 percent, Bank Central Asia dropped 3.19 percent, Bank Rakyat Indonesia skidded 3.82 percent, Indosat Ooredoo Hutchison shed 1.45 percent, Indocement eased 0.35 percent, Semen Indonesia lost 2.07 percent, Indofood Sukses Makmur fell 0.82 percent, United Tractors tumbled 4.78 percent, Astra International weakened 2.77 percent, Energi Mega Persada plunged 8.26 percent, Astra Agro Lestari contracted 4.55 percent, Aneka Tambang stumbled 4.46 percent, Vale Indonesia tanked 3.71 percent, Timah plummeted 8.16 percent and Bumi Resources crashed 5.16 percent.

The lead from Wall Street is brutal as the major averages opened deep in the red on Monday and stayed that way throughout the trading day.

The Dow plummeted 1,033 .99 points or 2.60 percent to finish at 38,703.27, while the NASDAQ tanked 576.08 points or 3.43 percent to close at 16,200.08 and the S&P 500 plunged 160.23 points or 3.00 percent to end at 5,186.33.

The continued weakness on Wall Street came on concerns that the U.S. economy may slip into recession following last Friday's disappointing jobs report.

Stocks regained some ground following the release of a report from the Institute for Supply Management showing service sector activity in the U.S. turned positive in the month of July.

Oil futures lower on Monday on concerns about the outlook for demand amid fears the U.S. economy could slip into a recession. West Texas Intermediate Crude oil futures for September sank $0.58 or 0.7 percent at $72.94 a barrel.