Lower Open Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in back-to-back sessions, slipping more than 20 points or 0.3 percent along the way. The Jakarta Composite Index now sits just shy of the 6,875-point plateau and it's likely in store for continued consolidation on Wednesday.

The global forecast for the Asian markets suggests consolidation on geopolitical concerns and fears over the outlook for interest rates. The European and U.S. markets were solidly lower and the Asian bourses are tipped to follow suit.

The JCI finished modestly lower on Tuesday following losses from the financial shares and mixed performances from the cement and resource stocks.

For the day, the index lost 21.31 points or 0.31 percent to finish at 6,873.40.

Among the actives, Bank Danamon Indonesia slid 0.34 percent, while Bank Negara Indonesia skidded 1.09 percent, Bank Central Asia fell 0.57 percent, Bank Mandiri lost 0.75 percent, Bank Rakyat Indonesia stumbled 1.23 percent, Indosat Ooredoo Hutchison slumped 0.37 percent, Indocement rallied 2.70 percent, Semen Indonesia added 0.66 percent, Indofood Suskes declined 1.51 percent, United Tractors retreated 1.23 percent, Astra International shed 0.45 percent, Energi Mega Persada tumbled 2.78 percent, Astra Agro Lestari skidded 1.19 percent, Vale Indonesia jumped 1.50 percent, Timah sank 0.83 percent, Bumi Resources plunged 2.88 percent and Aneka Tambang and Bank CIMB Niaga were unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower on Tuesday and saw the losses accelerate as the day progressed, ending near session lows.

The Dow plummeted 697.10 points or 2.06 percent to finish at 33,129.59, while the NASDAQ plunged 294.97 points or 2.50 percent to close at 11,492.30 and the S&P 500 tumbled 81.75 points or 2.00 percent to end at 3,997.34.

The sell-off on Wall Street reflected ongoing concerns about the outlook for interest rates amid a spike in treasury yields. The benchmark 10-year yield more than offset the dip seen last Friday, reaching its highest closing level in three months.

Recent economic data has also led to worries the Federal Reserve may raise rates higher than expected and keep them elevated for an extended period. Later today, the Fed will release minutes of its latest monetary policy meeting, which could shed some light on the outlook for interest rates.

Geopolitical concerns also weighed after Russian President Vladimir Putin said he is suspending Russia's participation in a nuclear arms treaty with the U.S. The announcement by Putin comes after U.S. President Joe Biden made a surprise visit to Ukraine's capital Kyiv on Monday.

Crude oil prices were volatile on Tuesday as traders weighed the impact of higher U.S. interest rates against optimism about increased demand from China. West Texas Intermediate for March delivery dipped $0.16 or 0.2 percent to $76.16 a barrel, while crude for April delivery eased $0.19 or 0.3 percent to $76.29 a barrel.