The Indonesia stock market on Monday wrote a finish to the three-day winning streak in which it had picked up almost 45points or 0.7 percent. The Jakarta Composite Index now rests just above the 6,410-point plateau and it figures to be rangebound on Tuesday.
The global forecast for the Asian markets is flat with a touch of upside on bargain hunting after heavy selling in the previous session. The European markets were slightly lower and the U.S. bourses were mixed and barely changed and the Asian markets are tipped to follow the latter lead.
The JCI finished sharply lower on Monday following heavy damage among the food, finance, cement and resource stocks.
For the day, the index tumbled 114.02 points or 1.75 percent to finish at 6,411.25 after trading between 6,391.52 and 6,474.65.
Among the actives, Bank Danamon Indonesia collected 0.28 percent, while Bank Mandiri skidded 3.02 percent, Bank Negara Indonesia tumbled 3.65 percent, Bank Central Asia shed 0.73 percent, Bank Rakyat Indonesia dropped 1.48 percent, Indosat plunged 5.69 percent, Indocement lost 1.321 percent, Semen Indonesia sank 2.01 percent, United Tractors retreated 2.32 percent, Indofood Suskes plummeted 8.45 percent, Unilever Indonesia fell 2.49 percent, Bumi Resources slid 3.01 percent, Aneka Tambang contracted 4.17 percent, Timah tumbled 6.18 percent and Vale Indonesia was down 3.67 percent.
The lead from Wall Street offers little clarity as stocks showed a lack of direction on Monday, bouncing back and forth across the unchanged line before closing mixed.
The Dow added 14.51 points or 0.06 percent to 25,516.83, while the NASDAQ lost 5.13 points or 0.07 percent to 7,637.54 and the S&P 500 fell 2.35 points or 0.08 percent to 2,798.36.
Traders were reluctant to take long positions ahead of the latest round of high-level trade talks between the U.S. and China this week in Beijing.
Meanwhile, lingering concerns about the outlook for the economy continued to weigh on the markets after dragging stocks sharply lower last Friday.
An inversion of the yield curve contributed to economic worries, with the yield on the benchmark ten-year note falling below the yield on three-month bills. The inverted yield curve has not occurred since 2007 and is seen by many as an indication that a recession is on the way.
Crude oil prices dipped on Monday, as fears of a drop in energy demand due to global economic slowdown outweighed optimism over OPEC-led supply cuts and the U.S. sanctions on Iran and Venezuela. West Texas Crude oil futures for May ended down $0.22 or 0.4 percent at $58.82 a barrel.
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