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Indonesia stock market may continue decline

Indonesia stock market

The Jakarta Composite Index stumbled 95.38 points or 1.55 percent to end at 6,071.44 after trading between 6,046.47 and 6,170.67

The Indonesia stock market has ended lower in back-to-back sessions, slipping more than 120 points or 2 percent along the way. The Jakarta Composite Index (JCI) is now just above 6,070-point and it may decline further on Wednesday.

The global forecast for the Asian markets is mixed to lower on bond yield worries and declining oil prices. The European markets rose and the U.S. bourse were lower and the Asian markets are tipped to split the difference.

The JCI ended sharply lower on Tuesday after losses from the financial shares, resource stocks and cement companies.

For the day, the index stumbled 95.38 points or 1.55 percent to end at 6,071.44 after trading between 6,046.47 and 6,170.67.

Among the actives, Bank Danamon Indonesia tanked 2.11 percent, while Bank CIMB Niaga retreated 1.90 percent, Bank Negara Indonesia plunged 4.13 percent, Bank Central Asia collected 0.55 percent, Bank Mandiri shed 0.78 percent, Bank Rakyat Indonesia plummeted 4.66 percent, Indosat tumbled 2.34 percent, Telkom Indonesia slid 0.88 percent, Indocement surrendered 3.08 percent, Semen Indonesia sank 2.47 percent, Indofood Suskes declined 1.47 percent, United Tractors skidded 1.38 percent, Astra International was down 2.26 percent, Astra Agro Lestari cratered 4,01 percent, Aneka Tambang lost 2.21 percent, Vale Indonesia fell 0.88 percent, Timah added 0.61 percent and Bumi Resources dropped 1.64 percent.

The lead from Wall Street is negative as stocks opened lower on Tuesday, regained some ground as the day progressed but still finished in the red.

The Dow fell 104.41 points or 0.31 percent to end at 33,066.96, while the NASDAQ dropped 14.25 points or 0.11 percent to finish at 13,045.39 and the S&P 500 dropped 12.54 points or 0.32 percent to end at 3,958.55.

The early weakness on Wall Street came as treasury yields extended the strong upward move seen on Monday, weighing on high-growth technology stocks.

The yield on the benchmark ten-year note jumped to its highest level in more than a year on optimism about the coronavirus vaccine rollouts and the economy reopening as well as President Joe Biden’s infrastructure plan.

In economic news, the Conference Board said consumer confidence skyrocketed more than expected in March, reaching its highest level in a year.

Crude oil prices fell on Tuesday after shipping traffic resumed through the Suez Canal. Traders were also weighing the impact of a surge in coronavirus cases and extended lockdown measures in Europe on near-term energy demand. West Texas Intermediate Crude oil futures for May dropped $1.01 or 1.6 percent at $60.55 a barrel.

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