Indonesia Market May Reverse Monday's Losses
The Indonesia stock market on Monday snapped the five-day winning streak in which it had surged more than 170 points or 3.4 percent. The Jakarta Composite Index closed just above the 5,260-point plateau, although the market may draw renewed support on Tuesday.
The global forecast for the Asian markets is flat to higher, with traders likely waiting on the Federal Reserve's monetary policy announcement later this week - although concerns about the political situation in Greece may limit the upside. The European and U.S. markets were higher on Monday, and the Asian bourses are tipped to at least open in the green.
The JCI finished sharply lower on Monday as the financial shares and resources stocks were mostly lower.
For the day, the index tumbled 63.86 points or 1.20 percent to finish at 5,260.02 after trading between 5,208.42 and 5,309.52. Volume was 4.80 billion shares worth 6.88 trillion rupiah. There were 257 decliners and 66 gainers, with 78 stocks finishing unchanged.
Among the actives, Astra Agro Lestari shed 1.98 percent, while Aneka Tambang tumbled 2.83 percent, Bank Central Asia fell 1.31 percent, Bank Danamon Indonesia collected 0.50 percent, Bank Mandiri plunged 2.42 percent, Bumi Resources plummeted 3.00 percent, Energi Mega Persada dipped 0.94 percent and XL Axiata eased 0.41 percent.
The lead from Wall Street is cautiously optimistic as stocks moved higher on Monday shaking off an early move to the downside and extending the NASDAQ's winning streak to six sessions.
The Dow inched up 6.10 points or less than a tenth of a percent to 17,678.70, while the NASDAQ rose 13.88 points or 0.3 percent to 4,771.76 and the S&P 500 climbed 5.27 points or 0.3 percent to 2,057.09.
The early weakness reflected the political situation in Greece after the anti-austerity Syriza party emerged victorious in the parliamentary elections on Sunday. Syriza may seek to abandon budget constraints and write off Greek debt.
Nonetheless, selling pressure waned as traders seemed reluctant to make any significant moves ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to leave interest rates unchanged, although traders are likely to pay close attention to any changes to the accompanying statement.