IDX falls, commodities weigh

IDX composite index opened significantly lower this morning due to bearish sentiment on commodities and global factors. IDX lost 2.6% in five minutes of the pre-market trading to tracking the downfall of most markets in the region and Wall Street.

In just 10 minutes, IDX composite index lost as much as 3.5% as Nikkei and Hang Seng dropped over 3%.

Plantation stocks were mainly in correction mode in both Malaysia and Singapore. Wilmar, the giant commodity player, lost 3.2%, while Indoagri dropped 4.1% in Singapore, as CPO futures pointed to new low. Astra Agro opened lower by 7.5%, while Bakrie Sumatra lost 8.8% and London Sumatra slashed 8.7%.

Energy stocks were mainly in negative territory. Shenhua and China Coal lost 4% and 6% in Hong Kong this morning, while BHP already dropped 4% in Australia. Straits Asia, with most coal operations in Indonesia, declined 3.5% in Singapore. Indika and Indo Tambangraya also opened lower by 5% and 6% respectively in Jakarta, while Bukit Asam lost 3.7% and Bumi Resources slashed 6%. Oil and gas giants, CNOOC and Petrochina lost 4% in Hong Kong. Elnusa and Medco dropped 6% and 5% respectively in Jakarta. Bakrie-controlled Energi Mega Persada slashed further by 11%.

Aneka Tambang, INCO, and Timah slashed by 6%, 5%, and 8% respectively to tracking the fall of metal stocks worldwide.

Even banking stocks were opened significantly lower, led by BRI (-3.5%), Mandiri (-3.9%), Danamon (-4%).

Well, the correction is considered fair especially because IDX composite index has rallied for over three months from 1264 in early March to 2108 in June 10 or a 67% gain.

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