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Indonesia Stock Market Declines Amid Global Tariff Concerns

Indonesia's stock market has faced a downturn, with the Jakarta Composite Index losing ground for two consecutive sessions. The bearish sentiment is fueled by global tariff worries and economic health concerns.

Date: 
AI Rating:   4

Market Overview: The report indicates that the Indonesia stock market, represented by the Jakarta Composite Index (JCI), has seen a decrease of nearly 85 points, equating to a 1.3 percent drop. Currently, the index is positioned just below the 6,550-point mark, with expectations of further declines on Wednesday.

The negative outlook is largely driven by international market trends, as concerns regarding tariffs and the health of the global economy affect investor sentiment. This has led to losses not only in Indonesia but also in European and U.S. markets, with a similar projection for Asian markets.

Sector Performance: On Tuesday, the JCI fell modestly by 52.36 points (0.79 percent), concluding at 6,545.85. Losses were primarily observed in sectors such as resource, telecom, and cement, but gains from financial shares provided some support against the decline. Notably, local banks showed individual performance variances, where Bank Danamon Indonesia saw a gain of 2.06 percent, while others like Indocement and Semen Indonesia experienced steep declines of 2.54 percent and 4.51 percent, respectively.

International Impact: The U.S. stock market's performance has remained weak, indicated by the S&P 500's drop of 42.49 points (0.76 percent). The underlying cause appears to be aggravated trade tensions, particularly regarding tariff implementations between the U.S. and Canada.

Investors are keenly awaiting further macroeconomic data from the U.S. on inflation and consumer sentiment, which could significantly influence market directions in the coming sessions.

Oil Prices: Oil prices have experienced a rebound, rising due to a weaker dollar after previously hitting six-month lows, which is a positive note amid concerns over broader market performance.

Local Indicators: Indonesia is expected to release January retail sales data, which saw a 1.8 percent annual increase in December, providing a clearer picture of local economic conditions.

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