FX.co ★ Indonesia Bourse May Reverse Monday's Losses

The Indonesian stock market concluded a four-day winning streak on Monday, during which it had accrued nearly 80 points or a 1.1 percent increase. The Jakarta Composite Index (JCI) now rests just below the 7,280-point mark, though a rebound appears likely on Tuesday. Positive global sentiment surrounding interest rates has fostered an optimistic outlook for Asian markets. Despite declines in European markets, U.S. bourses saw gains, suggesting a favorable direction for Asian exchanges.

On Monday, the JCI posted modest losses, mainly driven by declines in financial shares, resource stocks, and cement companies. Specifically, the JCI dropped 48.72 points or 0.66 percent, closing at 7,278.86 after varying between 7,252.81 and 7,346.10. Key market activities included:

- Bank CIMB Niaga declining by 0.83 percent

- Bank Mandiri falling by 1.17 percent

- Bank Danamon Indonesia decreasing by 0.77 percent

- Bank Central Asia dropping 0.25 percent

- Bank Rakyat Indonesia plummeting 1.63 percent

- Indosat Ooredoo Hutchison rising 0.22 percent

- Indocement slumping 1.67 percent

- Semen Indonesia shedding 0.73 percent

- Indofood Sukses Makmur adding 0.42 percent

- United Tractors climbing 1.06 percent

- Astra International retreating by 1.54 percent

- Energi Mega Persada advancing 0.91 percent

- Aneka Tambang sinking 0.74 percent

- Vale Indonesia declining 1.60 percent

- Timah tumbling 2.01 percent

Bumi Resources, Astra Agro Lestari, and Bank Negara Indonesia remained unchanged.

The lead from Wall Street was predominantly positive, as major averages opened higher on Monday and maintained an upward trend throughout the session, reaching new record closing highs amidst somewhat choppy trading conditions. The Dow Jones Industrial Average rallied 210.82 points or 0.53 percent, ending at 40,211.72. The NASDAQ Composite gained 74.12 points or 0.40 percent, closing at 18,472.57, while the S&P 500 rose 15.87 points or 0.28 percent, finishing at 5,631.22.

Support from Wall Street was bolstered by comments from Federal Reserve Chair Jerome Powell, who indicated that the central bank would not wait until inflation hits the 2 percent target to cut interest rates.

In economic news, the Federal Reserve Bank of New York reported that regional manufacturing activity contracted at a slightly accelerated pace in July.

Crude oil futures settled lower on Monday, affected by political uncertainty related to an assassination attempt on former President Donald Trump and weak economic data from China. West Texas Intermediate (WTI) crude oil futures for August declined by $0.30, ending at $81.91 per barrel.