Rebound Tipped For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Monday snapped the three-day winning streak in which it had gained almost 160 points or 1.2 percent. The Jakarta Composite Index now sits just above the 8,390-point plateau although it's expected to see renewed support on Tuesday. The global forecast for the Asian markets is broadly positive on optimism that the end of the U.S. government shutdown in near. The European and U.S. markets were sharply higher and the Asian bourses are expected to follow that lead. The JCI finished slightly lower on Monday as losses from the financials and telecoms were mitigated by support from the resource stocks and a mixed picture from the cement companies. For the day, the index eased 3.35 points or 0.04 percent to finish at the daily low of 8,391.24 after peaking at 8,478.15. Among the actives, Bank CIMB Niaga shed 0.57 percent, while Bank Mandiri fell 0.42 percent, Bank Danamon Indonesia collected 0.40 percent, Bank Negara Indonesia tumbled 1.78 percent, Bank Central Asia skidded 1.15 percent, Bank Rakyat Indonesia slumped 1.26 percent, Indosat Ooredoo Hutchison plunged 3.72 percent, Indocement improved 0.78 percent, Semen Indonesia plummeted 4.17 percent, Indofood Sukses Makmur slipped 0.35 percent, United Tractors rallied 1.36 percent, Energi Mega Persada surged 4.60 percent, Astra Agro Lestari dropped 0.96 percent, Aneka Tambang rose 0.34 percent, Vale Indonesia eased 0.22 percent, Timah soared 6.85 percent, Bumi Resources spiked 6.38 percent and Astra International was unchanged. The lead from Wall Street is solid as the major averages opened higher on Monday and largely spent most of the sessions firmly in positive territory.

The Dow jumped 381.53 points or 0.81 percent to finish at 47,368.63, while the NASDAQ surged 522.64 points or 2.27 percent to close at 23,527.17 and the S&P 500 rallied 103.63 points or 1.54 percent to end at 6,832.43.

The strength on Wall Street came after the Senate voted to advance legislation to end the government shutdown, which recently became the longest in U.S. history. The Senate voted 60-40 in favor of a temporary funding bill, which would also reverse some of the recent mass federal layoffs.

Several Democratic Senators broke with party leaders in favor of moving forward with the legislation, as it does call for a vote on the extension of enhanced Obamacare tax credits.

The end of the shutdown would also lead to the resumption of the release of key U.S. economic data that has recently been withheld.

Crude oil prices moved higher on Monday on the prospects of the U.S. government shutdown coming to a close. West Texas Intermediate crude for December delivery was up $0.31 or 0.52 percent at $60.06 per barrel. Closer to home, Indonesia will release September numbers for retail sales later today; in August, sales were up 3.5 percent on year.