Indonesia Bourse May See Positive Bounce On Tuesday

(RTTNews) - The Indonesia stock market has moved lower in two straight sessions, sinking more than 130 points or 1.9 percent along the way. The Jakarta Composite Index now rests just above the 7,065-point plateau and it may halt its slide on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on optimism over the outlook for interest rates. The European markets were slightly lower and the U.S. bourses were slightly higher and the Asian markets are tipped to follow the latter lead.

The JCI finished sharply lower on Monday following losses from the food, finance and telecom companies, while the resource stocks offered support.

For the day, the index tumbled 110.75 points or 1.54 percent to finish at 7,065.07 after trading between 7,035.84 and 7,152.91.

Among the actives, Bank CIMB Niaga stumbled 2.53 percent, while Bank Mandiri crashed 4.25 percent, Bank Danamon Indonesia sank 0.81 percent, Bank Negara Indonesia retreated 2.67 percent, Bank Central Asia surrendered 3.19 percent, Bank Rakyat Indonesia plummeted 5.62 percent, Indosat Ooredoo Hutchison dropped 0.96 percent, Semen Indonesia declined 1.78 percent, Indofood Sukses Makmur tumbled 2.54 percent, United Tractors cratered 2.45 percent, Astra International slumped 1.44 percent, Energi Mega Persada skidded 2.70 percent, Aneka Tambang surged 6.75 percent, Vale Indonesia added 0.57 percent, Timah plunged 5.06 percent, Bumi Resources rallied 4.24 percent and Indocement and Astra Agro Lestari were unchanged.

The lead from Wall Street is mildly positive as the major averages spent most of Monday in the red before a late rally nudged them over the unchanged line.

The Dow added 35.41 points or 0.08 percent to finish at 42,305.48, while the NASDAQ gained 128.85 points or 0.67 percent to close at 19,242.61 and the S&P 500 rose 24.25 points or 0.41 percent to end at 5,935.94.

The early weakness on Wall Street reflected renewed trade concerns amid further signs of rising tensions between the U.S. and China.

China on Monday pushed back against President Donald Trump's claims that it had broken the Geneva trade agreement, accusing the U.S. of violating the deal with increased tech export restrictions and the revocation of Chinese student visas.

However, selling pressure waned following the release of a report from the Institute for Supply Management showing U.S. manufacturing activity unexpectedly weakened in May. The report generated some optimism about the outlook for interest rates amid signs of U.S. economic weakness due to Trump's trade war.

Crude oil futures moved sharply higher on Monday, amid escalating geopolitical tensions and reports of more U.S. sanctions on Moscow. West Texas Intermediate crude for June delivery shot up $1.73 or 2.9 percent to $62.52 a barrel.