Indonesia Stock Market May Build On Monday's Gains

The Indonesia stock market bounced higher again on Monday, one session after it had ended the five-day winning streak in which it had risen more than 140 points or 2.7 percent. The Jakarta Composite Index now rests just above the 5,650-point plateau and it's expected to open higher again on Tuesday.

The global forecast for the Asian markets is upbeat on Covid-19 vaccine optimism. The European markets were slightly lower and the U.S. bourses were higher and the Asian markets figure to at least open in the green, although some profit taking may occur as the session progresses.

The JCI finished sharply higher on Monday following gains from the financial shares, cement stocks and resource companies.

For the day, the index spiked 81.11 points or 1.46 percent to finish at the daily high of 5,652.76 after moving as low as 5,583.33.

Among the actives, Bank Danamon Indonesia rallied 2.55 percent, while Bank Mandiri climbed 1.59 percent, Bank CIMB Niaga spiked 2.40 percent, Bank Negara Indonesia collected 3.96 percent, Indosat accelerated 3.64 percent, Indocement skyrocketed 7.47 percent, Semen Indonesia surged 6.61 percent, Indofood Suskes gained 0.69 percent, Astra Agro Lestari fell 0.23 percent, Aneka Tambang gathered 3.72 percent, Vale Indonesia jumped 2.19 percent, Timah rose 3.17 percent and Bumi Resources increased 6.00 percent.

The lead from Wall Street is positive as stocks opened higher on Monday and remained mostly in the green throughout the day, offsetting losses from the previous session.

The Dow soared 327.79 points or 1.12 percent to finish at 29,591.27, while the NASDAQ added 25.66 points or 0.22 percent to end at 11,880.63 and the S&P 500 rose 20.05 points or 0.56 percent to close at 3,577.59.

The strength on Wall followed additional upbeat news regarding a potential Covid-19 vaccine after AstraZeneca (AZN) said its vaccine candidate being developed in collaboration with Oxford University had an average efficacy of 70 percent.

Adding to the positive sentiment, the FDA has granted an emergency use authorization for Regeneron's Covid-19 antibody treatment.

Crude oil prices moved higher on Monday on optimism that OPEC and other oil producers may extend the curb on crude production by another few months. West Texas Intermediate Crude oil futures for January ended up $0.64 or 1.5 percent at $43.06 a barrel.