The Indonesian stock market has experienced a decline over the last two sessions, losing nearly 100 points or 1.4 percent, bringing the Jakarta Composite Index to just under the 7,480 mark. Further declines are anticipated on Tuesday. The outlook for Asian markets is generally neutral to negative, influenced by the upcoming U.S. presidential election and Federal Reserve's interest rate decision later this week. European and U.S. markets have seen declines, with similar trends expected in Asian markets. On Monday, the JCI saw a modest decline, with losses in the cement sector and gains in the food sector, while financial and resource sectors had mixed outcomes. The index closed down 25.75 points or 0.34 percent, ending at 7,479.50, after fluctuating between 7,415.81 and 7,529.70. Active stocks included Bank CIMB Niaga, which rose 1.64 percent; Bank Mandiri, up 1.50 percent; Bank Danamon Indonesia, gaining 0.40 percent; Bank Negara Indonesia, up 1.92 percent; Bank Central Asia, down 0.48 percent; Bank Rakyat Indonesia, up 0.43 percent; Bank Maybank Indonesia, down 1.75 percent; Indosat Ooredoo Hutchison, down 0.82 percent; Indocement, down 4.51 percent; Semen Indonesia, down 5.25 percent; Indofood Sukses Makmur, up 2.05 percent; United Tractors, up 0.37 percent; Astra International, up 0.99 percent; Energi Mega Persada, down 2.86 percent; Astra Agro Lestari, down 0.74 percent; Aneka Tambang, up 0.33 percent; Jasa Marga, down 1.67 percent; Vale Indonesia, down 0.79 percent; Timah, up 7.91 percent, and Bumi Resources, unchanged.
Wall Street's influence was notably soft as key indices opened lower on Monday, fluctuated throughout the day, and ended in the negative. The Dow dropped 257.59 points or 0.61 percent to 41,794.60, while the NASDAQ fell 59.93 points or 0.33 percent to 18,179.98, and the S&P 500 decreased by 16.11 points or 0.28 percent to 5,712.69.
The uncertain trading on Wall Street reflected caution among investors ahead of the U.S. elections on Tuesday, where Vice President Kamala Harris is set to challenge former President Donald Trump. With polls indicating a very close race, the election outcomes may remain unresolved on Election Day.
Investors are also anticipating the Federal Reserve's monetary policy announcement on Thursday. It is widely anticipated that the Fed will decrease interest rates by 25 basis points. Moreover, market participants will be scrutinizing the accompanying statement for any indications regarding the prospect of future rate reductions.
Oil prices surged on Monday, spurred by OPEC's decision to postpone increasing production and heightened concerns over Middle East tensions. December futures for West Texas Intermediate crude oil closed up $1.98 or approximately 2.85% at $71.47 per barrel, marking the fourth consecutive session of gains.
In domestic economic news, Indonesia is set to release its Q3 GDP data today, with forecasts suggesting an increase of 1.6 percent quarter-on-quarter and 5.0 percent year-on-year. This would reflect a slight easing from the previous quarter's growth of 3.79 percent quarter-on-quarter and 5.05 percent year-on-year.
