Jakarta Composite Index Faces Selling Pressure Amid Global Economic Concerns

(RTTNews) – The Indonesian stock market concluded Monday’s session, bringing an end to a three-day rally that had propelled the benchmark index by more than 350 points, representing a gain of 5.4 percent. The Jakarta Composite Index now hovers just below the 6,600 level, with analysts suggesting additional weakness could follow in Tuesday’s trading.

The broader Asian market outlook remains subdued, weighed down by escalating recession concerns and broader worries regarding the health of the global economy. European and U.S. equity markets concluded Monday’s session with significant declines, setting a negative tone that is expected to pressure Asian markets when they open for trading.

The JCI posted a modest decline on Monday, as losses concentrated in financial and commodity sectors were partially offset by strength in cement-related stocks.

For the session, the index retreated 37.79 points, or 0.57 percent, to close at 6,598.21, having traded within a range of 6,568.13 to 6,629.44.

Among notable movers, Bank CIMB Niaga fell 0.90 percent, while Bank Mandiri declined 2.69 percent. Bank Danamon Indonesia edged higher by 0.41 percent, Bank Negara Indonesia shed 1.98 percent, and Bank Rakyat Indonesia dropped 1.31 percent. Cement producers showed resilience, with Indocement gaining 3.05 percent and Semen Indonesia rising 3.39 percent. Indofood Sukses Makmur surged 4.14 percent, while United Tractors retreated 1.66 percent. Astra International fell 3.25 percent, Energi Mega Persada added 0.57 percent, and Astra Agro Lestari declined 0.86 percent. Mining stocks experienced significant weakness, with Aneka Tambang plummeting 8.59 percent and Vale Indonesia crashing 9.68 percent. Timah tumbled 2.96 percent, while Bumi Resources skyrocketed 8.51 percent. Bank Central Asia, Bank Maybank Indonesia, and Indosat Ooredoo Hutchison remained unchanged.

U.S. market sentiment points toward ongoing consolidation, as major indices opened lower Monday and continued to drift downward throughout the trading day.

The Dow Jones Industrial Average plummeted 890.01 points, or 2.08 percent, to finish at 41,911.71. The NASDAQ Composite crashed 727.90 points, or 4.00 percent, to close at 17,468.32, while the S&P 500 stumbled 155.64 points, or 2.70 percent, to end at 5,614.56.

The weakness on Wall Street reflected mounting concerns about economic growth prospects and corporate profitability, following U.S. President Donald Trump’s refusal to dismiss the possibility of a recession in light of his tariff measures targeting Mexico, Canada, and China.

With a series of critical economic releases scheduled later this week, investor sentiment remains exceptionally cautious. Upcoming data includes reports on consumer and producer price inflation, along with readings on consumer confidence and inflation expectations.

Crude oil prices declined to six-month lows on Monday, as concerns about global economic growth and recession fears in the United States dampened demand outlooks. West Texas Intermediate crude futures settled down $1.01, or 1.5 percent, at $66.03 per barrel—the lowest settlement since September 10, 2024.

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