Markets

Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market bounced higher again on Thursday, one day after it had ended the two-day winning streak in which it had picked up almost 50 points or 1 percent. The Jakarta Composite Index now rests just beneath the 5,100-point plateau although it may run out of steam on Friday.

The global forecast for the Asian markets is soft on economic growth concerns and coronavirus fears. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The JCI finished modestly higher on Thursday following mixed performances from the financial shares and cement companies.

For the day, the index added 22.58 points or 0.44 percent to finish at 5,098.37 after trading between 5,075.83 and 5,107.26.

Among the actives, Bank Danamon Indonesia skidded 1.06 percent, while Bank Central Asia collected 0.49 percent, Bank Negara Indonesia fell 0.21 percent, Indosat tumbled 1.18 percent, Indocement spiked 2.35 percent, Semen Indonesia shed 0.53 percent, Indofood Suskes jumped 1.53 percent, United Tractors added 0.41 percent, Aneka Tambang lost 0.76 percent, Vale Indonesia dropped 0.93 percent, Timah sank 0.78 percent and Bank Mandiri and Bumi Resources were unchanged.

The lead from Wall Street is negative as stocks opened in the red on Thursday and remained there throughout the session.

The Dow shed 135.39 points or 0.50 percent to finish at 26,734.71, while the NASDAQ lost 76.66 points or 0.73 percent to end at 10,473.83 and the S&P 500 fell 10.99 points or 0.34 percent to close at 3,215.57.

The weakness on Wall Street followed the release of a Labor Department report showing the decline in first-time claims for unemployment benefits nearly ground to a halt last week.

The negative sentiment was partly offset by a Commerce Department report showing another substantial increase in retail sales in June, although the data was seen as old news as some states rolled back their reopening plans due to a surge in coronavirus cases.

Crude oil futures settled lower on Thursday on worries about the outlook for near term energy demand after OPEC decided to start tapering production cuts beginning next month. West Texas Intermediate Crude oil futures for August were down $0.45 or 1.1 percent at $40.75 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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