Lower Open Predicted For Indonesia Stock Market - RTTNews - Financial Daily News Site

Lower Open Predicted For Indonesia Stock Market – RTTNews

The Indonesia stock market rebounded on Friday, one day after snapping the three-day winning streak in which it had climbed almost 270 points or 2.4 percent. The Jakarta Composite Index now rests just above the 7,180-point plateau although it’s expected to turn lower again on Monday.

The global forecast for the Asian markets is soft on pessimism over the outlook for interest rates following a stronger than expected jobs report from the United States. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Friday as gains from the financials were offset by weakness from the cement and resource companies.

For the day, the index gained 34.24 points or 0.48 percent to finish at 7,182.96 after trading between 7,170.69 and 7,234.00.

Among the actives, Bank Danamon Indonesia sank 0.78 percent, while Bank Negara Indonesia climbed 1.13 percent, Bank Central Asia collected 0.33 percent, Bank Rakyat Indonesia advanced 0.89 percent, Indosat added 0.43 percent, Indocement shed 0.51 percent, Semen Indonesia skidded 1.05 percent, Indofood Suskes fell 0.37 percent, United Tractors soared 3.08 percent, Astra International was down 0.34 percent, Aneka Tambang lost 0.40 percent, Vale Indonesia tanked 3.15 percent, Timah slumped 0.50 percent, Bumi Resources retreated 1.71 percent and Bank CIMB Niaga, Bank Mandiri, Astra Agro Lestari, Energi Mega Persada and Bakrie Sumatera Plantations were unchanged.

The lead from Wall Street is broadly negative as the major averages opened deep in the red on Friday and remained that way throughout the session.

The Dow tumbled 348.60 points or 1.05 percent to finish at 32,899.70, while the NASDAQ plunged 304.17 points or 2.47 percent to close at 12,012.73 and the S&P 500 sank 68.28 points or 1.63 percent to end at 4,108.54.

For the week, the Dow slid 0.9 percent, the NASDAQ lost 1 percent and the S&P fell 1.2 percent.

The weakness that emerged on Wall Street came as traders cashed in after a stronger than expected jobs report offset the faint hopes that the Federal Reserve might slow its planned pace of interest rate hikes.

In other economic news, the Institute for Supply Management said growth in U.S. service sector activity slowed slightly more than expected in May.

Crude oil prices climbed higher Friday on expectations of increased demand even as OPEC decided to increase output. Stronger than expected U.S. non-farm payroll employment in May also offered support. West Texas Intermediate Crude oil futures for July ended higher by $2.00 or 1.7 percent at $118.87 a barrel.

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