The Indonesian stock market has been on a downward trend for three consecutive sessions, plummeting almost 220 points or 3 percent. The Jakarta Composite Index currently stands just over the 7,160-point mark, with predictions about some likely support on Tuesday.
There is no clear global forecast for Asian markets due to the uncertain outlook regarding interest rates. While the markets in Europe were buoyant, the U.S. markets showed mixed results, a trend that Asian markets are expected to follow.
The Jakarta Composite Index ended significantly lower on Monday with losses across all sectors, particularly within the financial shares. The index fell by 127.46 points or 1.75 percent, closing at 7,161.35.
Several banks including Bank Mandiri, Bank Danamon Indonesia, Bank Negara Indonesia, Bank Central Asia, and Bank Rakyat Indonesia recorded steep losses. However, Indofood Sukses Makmur reported a slight gain, whereas United Tractors faced a minor loss.
The Wall Street trend is unclear as the major averages began on a somewhat positive note on Monday but turned red for the majority of the day, except for NASDAQ which managed to reclaim some lost ground.
Dow Jones Industrial Average fell by 240.52 points or 0.60 percent, to close at 39,566.85, NASDAQ rose by 17.37 points or 0.11 percent to 16,396.83, and the S&P 500 declined by 10.58 points or 0.20 percent to 5,243.77.
Investors had the initial chance to respond to the latest U.S. consumer price inflation data released last Friday, which met expectations to a large extent. Nevertheless, investors remained cautious due to uncertainties about whether inflation is receding fast enough to ensure the anticipated interest rate cuts from the Federal Reserve.
A report from the Institute for Supply Management revealed an unexpected rise in U.S. manufacturing activity in March, leading to a rise in Treasury yields.
Meanwhile, oil prices increased on Monday over concerns about a potential reduction in supplies after reports of an Israeli strike near the Iranian embassy in Damascus. As a result, West Texas Intermediate Crude oil futures for May closed higher by $0.54 or 0.65 percent at $83.71 per barrel.
