JAKARTA (TheInsiderStories) – The Indonesia stock market has finished lower in five straight sessions, tumbling more than 210 points or 3 per cent along the way. The Jakarta Composite Index (JCI) now rests just beneath the 6,290-point plateau, and it’s expected to trade under pressure again throughout the day today (20/3).
At midday’s trading (20/3), the JCI fell 69.866 points or down 1.11 per cent at 6,219.706. The decline was led by infrastructure stock index, which lost 2.16 per cent, followed by basic industry stocks (-1.62 per cent), finance (-1.23 per cent), consumer (-1.06 per cent), manufacturing (-0.97 per cent), property (-0.78 per cent), trade (-0.7 per cent), mining (-0.63 per cent0 and agriculture stocks (-0.28 per cent). Ony miscellaneous industry stocks that were trading in the positive zone, rising by 0.07 per cent.
On Monday, the JCI finished slightly lower driven by mixed performances of the food, financial and resource stocks, in the run-up to U.S. Federal Reserve Chairman Jerome Powell’s first policy meeting and Bank Indonesia’s quarterly meeting on Thursday.
For the day, the index sank 71.53 points or 1.137 per cent to finish at 6,218.033 after trading between 6,277.76 and 6,319.65.
The global forecast for the Asian markets is broadly negative thanks to ongoing fears of a trade war, the outlook for interest rates and a drop in crude oil prices. The European and U.S. markets were sharply lower and the Asian bourse figure to follow suit.
The Fed is expected to raise rates on Wednesday, with market participants looking for hints on the number of rate increases in store for the rest of 2018 in Powell’s commentary the next day.
With the Fed widely expected to raise interest rates by 25 basis points, traders will keep an eye on the accompanying statement for clues about the outlook for future rate hikes. New Fed Chairman Jerome Powell’s first press conference as head of the central bank is also likely to attract considerable attention.
A steep drop by social media giant Facebook (FB) was a heavy drag on the technology sector, while telecoms, energy, computer hardware and steel stocks also fell under pressure.
Crude oil futures fell along with U.S. stocks Monday as traders fretted over a litany of defections and firings from the Trump Administration. WTI light sweet oil was down 28 cents or 0.5 percent to settle at $62.06/bbl.
Written by Elisa Valenta, email: email@example.com