Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in six straight sessions, gathering almost 230 points or 3.3 percent along the way. The Jakarta Composite Index now sits just beneath the 7,100-point plateau although investors figure to lock in gains on Tuesday. The global forecast for the Asian markets offers little clarity as traders figure to wait and see what transpires over trade and tariff talks. The European markets were down and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The JCI finished modestly higher on Monday as gains from the food and resource stocks were capped by weakness from the financial sector. For the day, the index jumped 49.71 points or 0.71 percent to finish at 7,097.15 after trading between 7,071.34 and 7,136.30. Among the actives, Bank CIMB Niaga dropped 0.87 percent, while Bank Mandiri plummeted 5.63 percent, Bank Danamon Indonesia fell 0.41 percent, Bank Negara Indonesia tanked 3.35 percent, Bank Central Asia skidded 1.16 percent, Bank Rakyat Indonesia stumbled 2.58 percent, Indosat Ooredoo Hutchison retreated 2.38 percent, Semen Indonesia declined 2.14 percent, Indofood Sukses Makmur climbed 1.21 percent, United Tractors improved 0.78 percent, Astra International dipped 0.21 percent, Energi Mega Persada surged 5.14 percent, Aneka Tambang jumped 1.34 percent, Vale Indonesia rallied 1.47 percent, Timah slumped 1.44 percent, Bumi Resources advanced 0.88 percent and Indocement and Astra Agro Lestari were unchanged. The lead from Wall Street is uninspired as the major averages opened lower on Monday and gradually ticked up into positive territory, finishing with mild gains.

The Dow added 88.14 points or 0.20 percent to finish at 44,459.65, while the NASDAQ gained 54.80 points or 0.27 percent to close at 20,640.33 and the S&P 500 rose 8.81 points or 0.14 percent to end at 6,268.56.

The choppy trading on Wall Street followed President Donald Trump's threats to impose 30 percent tariffs on imports from the European Union and Mexico beginning Aug. 1. The EU responded that it will suspend the implementation of its trade countermeasures against the U.S. until early August to allow more time for a negotiated settlement.

Traders may be reluctant to make significant moves ahead of the release of some key economic data in the coming days, including reports on consumer and producer prices, retail sales and industrial production.

Earnings season also picks up steam this week, with Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC), Goldman Sachs (GS), Johnson & Jonson (JNJ) and Netflix (NFLX) among the big name companies due to report their quarterly results.

Crude oil prices slumped on Monday on continuing concerns over OPEC's decision to increase output again next month. West Texas Intermediate crude for August delivery dropped $1.24 or 1.85 percent to $65.79 per barrel. Closer to home, Indonesia will release June data for imports, exports and trade balance later today. In May, imports were up 4.14 percent on year and exports rose an annual 9.68 percent for a trade surplus of $4.30 billion.