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Indonesia Stock Market Likely To Remain Rangebound

The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had spiked more than 65 points or 1 percent. The Jakarta Composite Index now rests just beneath the 6,630-point plateau although it figures to hand back those gains on Monday.

The global forecast for the Asian markets is broadly negative over concerns for the outlook on interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets figure to follow that lead.

The JCI finished modestly higher on Friday as gains from the resource stocks were offset by weakness from the financial sector.

For the day, the index collected 30.36 points or 0.46 percent to finish at 6,628.82 after trading between 6,621.44 and 6,655.61.

Among the actives, Bumi Resources surged 3.14 percent, while Voksel Electric plunged 8.00 percent, XL Axiata climbed 2.04 percent, Bank MNC Internasional dropped 1.89 percent, Lotte Chemical tumbled 1.87 percent, Tiga Pilar Sejahtera Food skidded 1.80 percent, Bank Pan Indonesia jumped 1.43 percent, Bank Danamon slid 1.42 percent and Jasa Marga and Vale Indonesia were unchanged.

The lead from Wall Street is brutal as stocks moved sharply lower on Friday as traders worried about the prospect of higher interest rates - extending the pullback last week's record highs.

The Dow tumbled 665.75 points or 2.54 percent to 25,520.96, the NASDAQ slumped 144.92 points or 1.96 percent to 7,240.95 and the S&P 500 fell 59.85 points or 2.12 percent to 2,762.13. For the week, the Dow lost 4.1 percent, the NASDAQ shed 3.5 percent and the S&P plunged 3.9 percent.

The concerns about higher interest rates came after the Labor Department reported stronger than expected job growth and a jump in wages. The Federal Reserve may respond to strong economic growth by hiking interest rates three times in 2018.

A negative reaction to quarterly results from big name tech companies like Google parent Alphabet (GOOGL) and Apple (AAPL) also contributed to the selloff.

Crude oil also responded negatively to the jobs report as WTI for March delivery fell 35 cents to $65.45 per barrel.

by RTT Staff Writer

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