Indonesia Shares Tipped To Bounce Higher On Monday
(RTTNews) - The Indonesia stock market on Friday ended the four-day winning streak in which it had advanced almost 100 points or 0.9 percent. The Jakarta Composite Index now sits just beneath the 5,350-point plateau although it's expected to rebound on Monday.
The global forecast for the Asian markets suggests mild upside on optimism for economic recovery, although a rising number of coronavirus cases may limit the upside. 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 lower on Friday following losses from the financial and food shares and mixed performances from the resource and cement stocks.
For the day, the index lost 24.81 points or 0.46 percent to finish at 5,346.66 after trading between 5,325.60 and 5,381.95.
Among the actives, Bank Danamon Indonesia shed 0.36 percent, while Bank Mandiri skidded 1.19 percent, Bank CIMB Niaga lost 0.58 percent, Bank Negara Indonesia dropped 0.94 percent, Indosat tumbled 2.06 percent, Indocement added 0.41 percent, Semen Indonesia dipped 0.23 percent, Indofood Suskes sank 0.65 percent, Astra Agro Lestari advanced 1.00 percent, Aneka Tambang soared 3.14 percent, Vale Indonesia retreated 1.31 percent, Timah surged 5.81 percent and Bumi Resources was unchanged.
The lead from Wall Street is positive as stocks moved higher on Friday, sending the NASDAQ and S&P 500 to fresh record closing highs.
The Dow climbed 161.60 points or 0.57 percent to finish at 28,653.87, while the NASDAQ gained 70.30 points or 0.60 percent to end at 11,695.63 and the S&P 500 rose 23.46 points or 0.67 percent to close at 3,508.01. For the week, the Dow gained 2.6 percent, the NASDAQ rose 3.4 percent and the S&P was up 3.3 percent.
The support on Wall Street came as traders continued to digest Federal Reserve Chair Jerome Powell's announcement of the central bank's adoption of average inflation targeting. Powell's comments on Thursday were seen as an indication the Fed will leave interest rates at near-zero levels for the foreseeable future even if there is an acceleration in the pace of inflation.
Adding to the positive sentiment, the Commerce Department reported an unexpected increase in personal income in July. Also, the University of Michigan said consumer sentiment in the U.S. improved by more than estimated in August.
Crude oil prices ended slightly lower on Friday, as worries about the near-term energy demand outlook amid a surge in new coronavirus cases weighed on the commodity. West Texas Intermediate Crude oil futures for October ended down $0.07 or 0.2 percent at $42.97 a barrel.
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