Lower Open Called For Indonesia Stock Market

(RTTNews) - The Indonesia stock market headed south again on Tuesday, one day after snapping the two-day slide in which it had slipped almost 20 points or 0.3 percent. The Jakarta Composite Index now sits just above the 8,360-point plateau although the losses may accelerate on Wednesday.

The global forecast for the Asian markets is weak on persistent concerns about an AI bubble. The European and U.S. markets were sharply lower and the Asian bourses also figure to open to the downside.

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

For the day, the index shed 54.96 points or 0.65 percent to finish at 8,361.93 after trading between 8,341.90 and 8,442.87.

Among the actives, Bank CIMB Niaga rallied 3.12 percent, while Bank Mandiri shed 0.62 percent, Bank Danamon Indonesia sank 0.78 percent, Bank Negara Indonesia jumped 1.59 percent, Bank Central Asia tumbled 2.04 percent, Bank Rakyat Indonesia collected 0.76 percent, Indosat Ooredoo Hutchison added 0.49 percent, Indocement rose 0.37 percent, Semen Indonesia stumbled 2.31 percent, Indofood Sukses Makmur retreated 1.41 percent, United Tractors tanked 2.77 percent, Astra International slipped 0.39 percent, Astra Agro Lestari lost 0.65 percent, Aneka Tambang slumped 1.63 percent, Vale Indonesia plummeted 5.12 percent, Timah cratered 4.69 percent, Bumi Resources plunged 3.60 percent and Energi Mega Persada was unchanged.

The lead from Wall Street is negative as the major averages opened in the red and remained under water throughout the trading day.

The Dow plunged 498.50 points or 1.07 percent to finish at 46,091.74, while the NASDAQ stumbled 275.23 points or 1.21 percent to close at 22,432.85 and the S&P 500 sank 55.09 points or 0.83 percent to end at 6,617.32.

Weakness among technology stocks continued to weigh on Wall Street amid an extended decline by market leader and AI darling Nvidia (NVDA) as traders look ahead to the release of the chipmaker's quarterly results later today.

The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble.

On the U.S. economic front, the Commerce Department released a report showing a significant rebound by new orders for U.S. manufactured goods in the month of August.

Crude oil prices soared on Tuesday as the end of the U.S. government shutdown has accelerated expectations of brisk demand. West Texas Intermediate crude for December delivery was up $0.90 or 1.49 percent at $60.80 per barrel.

Closer to home, The central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on 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.