Mild Upside Tipped For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved lower in back-to-back sessions, dropping almost 75 points or 1.5 percent along the way. The Jakarta Composite Index now sits just above the 5,100-point plateau and it's likely remain in that neighborhood again on Monday.

The global forecast for Asian markets is murky, clouded by uncertainty regarding stimulus in the United States. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished barely lower on Friday as losses from the financial shares were mitigated by support from the cement companies and a mixed picture from the resource stocks.

For the day, the index eased 1.74 points or 0.03 percent to finish at 5,103.41 after trading between 5,067.59 and 5,115.56.

Among the actives, Bank Danamon Indonesia jumped 1.69 percent, while Bank Mandiri shed 0.45 percent, Bank CIMB Niaga lost 0.66 percent, Bank Negara Indonesia collected 0.63 percent, Bank Rakyat sank 1.81 percent, Indosat added 0.49 percent, Indocement climbed 1.29 percent, Semen Indonesia advanced 0.82 percent, United Tractors gathered 0.81 percent, Indofood Suskes rose 0.35 percent, Astra International surged 4.01 percent, Astra Agro Lestari gained 0.46 percent, Aneka Tambang increased 0.53 percent, Timah tanked 3.01 percent and Vale Indonesia and Bumi Resources were unchanged.

The lead from Wall Street is uninspired after stocks opened higher on Friday but faded as the day progressed, eventually ending mixed.

The Dow added 112.11 points or 0.39 percent to finish at 28,606.31, while the NASDAQ sank 42.34 points or 0.36 percent to end at 11,671.56 and the S&P 500 rose 0.47 points or 0.01 percent to close at 3,483.81. For the week, the Dow rose 0.1 percent, the NASDAQ gained 0.8 percent and the S&P was up 0.2 percent.

The late-day pullback on Wall Street reflected lingering uncertainty about a new stimulus bill, with the slump also being attributed to the expiration of equity options.

The rally in early trading came as better than expected retail sales data tempered concerns the economic recovery may be stalling. Also, the University of Michigan reported a bigger than expected improvement in consumer sentiment in October.

Buying interest was also generated after Pfizer (PFE) Chairman and CEO Albert Bourla said the drug giant will apply for emergency use of the Covid-19 vaccine it is developing with BioNTech (BNTX) soon after the safety milestone is achieved in the third week of November.

Crude oil prices ended marginally lower on Friday as worries about the demand outlook amid the continued surge in coronavirus cases weighed on the commodity. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.88 a barrel.

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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