Higher Open Called For Indonesia Stock Market

(RTTNews) - Ahead of Friday's holiday for Eid al-Adha, the Indonesia stock market had snapped the two-day slide in which it had eased just 5 points or 0.1 percent. The Jakarta Composite Index now rests just beneath the 5,150-point plateau and it's looking at another green light for Monday's trade.

The global forecast for the Asian markets is upbeat on solid earnings from technology stocks and anticipation for new stimulus measures. The European markets were down on Friday and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished modestly higher on Thursday following gains from the financials, weakness from the oil stocks and a mixed picture from the resource companies.

For the day, the index collected 38.52 points or 0.75 percent to finish at the daily high of 5,149.63 after trading as low as 5,091.40.

Among the actives, Bank Mandiri jumped 1.75 percent, while Bank Central Asia accelerated 1.71 percent, Bank Negara Indonesia collected 0.22 percent, Indosat tumbled 1.71 percent, Indocement eased 0.20 percent, Semen Indonesia plunged 2.64 percent, Indofood Suskes advanced 0.78 percent, Vale Indonesia added 0.59 percent, Timah surrendered 2.56 percent and Bank Danamon Indonesia, Bumi Resources and Aneka Tambang was unchanged.

After considerable volatility, the lead from Wall Street ended up to be positive thanks to a late-day surge on Friday, fueled by gains from the technology stocks.

The Dow added 114.62 points or 0.44 percent to finish at 26,428.32, while the NASDAQ soared 157.47 points or 1.49 percent to end at 10,745 and the S&P 500 rose 24.90 points or 0.77 percent to close at 3,271.12. For the week, The Dow eased 0.2 percent, the NASDAQ surged 3.7 percent and the S&P jumped 1.7 percent.

The higher close on Wall Street partly reflected a positive reaction to better than expected quarterly results from several leading technology companies, including Apple (AAPL), Amazon (AMZN) and Facebook (FB).

The upbeat tech earnings news overshadowed concerns about stalled negotiations over a new coronavirus stimulus package. Lawmakers appear at an impasse as the attempt to reach a compromise between a $1 trillion GOP relief proposal and the $3.4 trillion bill passed by the Democratic-controlled House in May.

In economic news, the Commerce Department said personal income slumped more than expected in June, although there was another substantial increase in personal spending. A separate report from the University of Michigan said consumer sentiment deteriorated more than expected in July.

Crude oil futures closed higher on Friday, buoyed by a report from the U.S. Energy Information Administration that said oil production fell sharply in May. West Texas Intermediate Crude oil futures for September ended up $0.35 or 0.9 percent at $40.27 a barrel.

Closer to home, Indonesia will see July figures for consumer prices later today, with forecasts suggesting an increase of 0.03 percent on month and 1.66 percent on year - slowing from 0.18 percent on month and 1.96 percent on year in June. Core CPI is tipped to gain an annual 2.11 percent, easing from 2.26 percent in the previous month.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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