The Indonesian stock market has experienced a decline over the past three sessions, shedding more than 200 points or approximately 2.8%. As a result, the Jakarta Composite Index is currently positioned just below the 7,260-point mark, although an upward trend is anticipated as trading opens on Tuesday. Globally, the forecast for Asian markets is varied but leans towards an upward movement, primarily supported by robust performances in the technology sector. In contrast, European markets registered declines, and U.S. markets showed a mixed performance, which Asian markets are expected to mirror. On Monday, the JCI concluded with slight losses, primarily due to a downturn in resource stocks and a mixed showing from the financial sector. The index fell by 66.16 points, or 0.90%, concluding at 7,258.63, oscillating between a low of 7,204.65 and a high of 7,320.79.
In terms of specific stocks, Bank CIMB Niaga decreased by 0.56%, while Bank Mandiri gained 0.83%. Bank Negara Indonesia fell by 1.90%, whereas Bank Central Asia rose by 0.50%. Bank Rakyat Indonesia increased by 1.92%, and Indosat Ooredoo Hutchison decreased by 1.52%. Similarly, Semen Indonesia fell by 1.18%, Indofood Sukses Makmur declined by 0.61%, United Tractors slid by 0.36%, Energi Mega Persada decreased by 1.64%, with Astra Agro Lestari, Aneka Tambang, Jasa Marga, Vale Indonesia, Timah, and Bumi Resources experiencing various declines. Notably, Bank Danamon Indonesia, Bank Maybank Indonesia, Indocement, and Astra International remained stable.
Turning to Wall Street, there is cautious optimism, with the major indices beginning and ending Monday with mixed outcomes. The Dow Jones Industrial Average dropped by 110.58 points or 0.25% to close at 43,717.48. In contrast, the NASDAQ surged by 247.17 points or 1.24%, reaching a record close of 20,173.89, and the S&P 500 rose by 22.99 points or 0.38% to settle at 6,074.08.
This overall strength on Wall Street is driven by optimism regarding interest rates, ahead of a crucial monetary policy decision by the Federal Reserve. The Fed is widely anticipated to continue its policy of rate cuts, with CME Group's FedWatch Tool showing a 99.1% probability of a 25 basis point reduction in rates.
The NASDAQ's rise is attributed to strong performances in semiconductor stocks, exemplified by a 2.1% jump in the Philadelphia Semiconductor Index. Networking stocks also displayed notable strength, pushing the NYSE Arca Networking Index up by 2.0% to a new record high.
However, buying interest was somewhat limited due to persistent worries about inflation, which suggest the Fed might reduce rates more gradually than previously predicted in the coming year.
In U.S. economic updates, the Federal Reserve Bank of New York reported a significant decline in its regional manufacturing activity index for December.
Meanwhile, crude oil prices fell on Monday due to concerns over demand forecasts following weak economic data from China and looming tariff threats. West Texas Intermediate Crude oil futures for January closed down by $0.58, at $70.71 a barrel.
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