Indonesia Stock Market May Open Under Pressure

(RTTNews) - The Indonesia stock market has moved higher in back-to-back sessions, collecting almost 70 points or 1 percent along the way. The Jakarta Composite Index now rests just beneath the 6,730-point plateau although the rally may stall on Tuesday.

The global forecast for the Asian markets is soft, thanks to the uncertainty surrounding the U.S. debt ceiling situation. The European and U.S. bourses were mostly lower and little changed and the Asian markets figure to follow that lead.

The JCI finished modestly higher on Monday following gains from the financial shares and cement stocks, while the resource companies were mixed.

For the day, the index added 29.09 points or 0.43 percent to finish at 6,729.65 after trading between 6,675.88 and 6,757.62.

Among the actives, Bank CIMB Niaga collected 0.69 percent, while Bank Mandiri spiked 2.96 percent, Bank Danamon Indonesia soared 3.96 percent, Bank Negara Indonesia rose 0.28 percent, Bank Rakyat Indonesia increased 0.46 percent, Indosat Ooredoo Hutchison tumbled 1.92 percent, Indocement advanced 0.98 percent, Semen Indonesia rallied 2.11 percent, Indofood Suskes shed 0.72 percent, United Tractors spiked 2.47 percent, Astra International jumped 1.93 percent, Energi Mega Persada accelerated 1.96 percent, Aneka Tambang sank 0.77 percent, Vale Indonesia skidded 1.17 percent, Bumi Resources strengthened 1.72 percent and Bank Central Asia, Astra Agro Lestari and Timah were unchanged.

The lead from Wall Street is uninspired as the major averages opened slightly higher but quickly headed south. They staged a modest recovery as the day progressed, although the Dow never managed to escape from negative territory.

The Dow dropped 140.05 points or 0.42 percent to finish at 33,286.58, while the NASDAQ climbed 62.88 points or 0.50 percent to close at 12,720.78 and the S&P 500 rose 0.65 points or 002 percent to end at 4,192.63.

The weakness on Wall Street came as investors largely refrained from making significant moves as they awaited updates on debt ceiling negotiations between President Joe Biden and House Speaker Kevin McCarthy, R-Calif., which so far have not found a resolution.

Treasury Secretary Yellen said on Sunday that the likelihood of the Treasury paying all U.S. bills by June 15 is getting smaller each day.

Concerns over the outlook for interest rates also weighed as Federal Reserve Bank of St. Louis President James Bullard said that he backed two more increases.

Crude oil prices pared early losses and settled higher on Monday, amid hopes the U.S. lawmakers will reach a debt ceiling deal soon and help the nation avoid a default. West Texas Intermediate crude oil futures for June settled at $71.99 a barrel, up $0.44 or 0.6 percent on the expiration day.