Oversold Indonesia Shares Called Lower On Monday

(RTTNews) - The Indonesia stock market has finished lower in seven straight sessions, slipping more than 355 points or 5.4 percent along the way. The Jakarta Composite Index now rests just above the 6,715-point plateau and it's got another weak lead for Monday's trade.

The global forecast for the Asian markets is soft on recession concerns and the outlook for interest rates. The European markets were up and the U.S, bourses were down and the Asian markets figure to follow the latter lead.

The JCI finished sharply lower on Friday following losses from the resource stocks and a mixed performance from the financial sector.

For the day, the index tumbled 89.11 points or 1.31 percent to finish at 6,715.12.

Among the actives, Bank Danamon Indonesia declined 1.41 percent, while Bank CIMB Niaga fell 0.42 percent, Bank Negara Indonesia collected 0.53 percent, Bank Central Asia advanced 0.88 percent, Bank Mandiri retreated 1.24 percent, Bank Rakyat Indonesia lost 0.83 percent, Indosat Ooredoo Hutchison dropped 0.86 percent, Indocement rose 0.25 percent, Indofood Suskes added 0.36 percent, United Tractors plummeted 4.30 percent, Energi Mega Persada tumbled 1.99 percent, Astra Agro Lestari sank 0.92 percent, Aneka Tambang tanked 2.76 percent, Vale Indonesia slumped 1.69 percent, Timah plunged 2.51 percent, Bumi Resources shed 0.58 percent and Astra International and Semen Indonesia were unchanged.

The lead from Wall Street is negative as the major averages opened in the red, ticked higher midday but slumped going into the close.

The Dow dropped 305.04 points or 0.90 percent to finish at 33,476.46, while the NASDAQ sank 77.38 points or 0.70 percent to close at 11,004.62 and the S&P 500 lost 29.13 points or 0.73 percent to end at 3,934.38.

For the week, the NASDAQ plunged 4.0 percent, the S&P sank 3.4 percent and the Dow dropped 2.8 percent.

The late-day weakness on Wall Street came as traders looked ahead to this week's highly anticipated Federal Reserve meeting.

While the Fed is widely expected to slow the pace of interest rate hikes to 50 basis points, traders have recently expressed concerns about how much further the Fed will need to raise rates in order to contain inflation.

Adding to concerns about the outlook for interest rates, the Labor Department said U.S producer prices increased more than expected last month. But the negative sentiment was partly offset by a report from the University of Michigan showing a decrease in consumers' inflation expectations.

Crude oil futures fell on Friday. weighed down by concerns about the outlook for energy demand due to a possible global economic recession amid policy tightening by central banks. West Texas Intermediate Crude oil futures for January ended lower by $0.44 or 0.6 percent at $71.02 a barrel. WTI crude futures sank 11.6 percent in the week.