After snapping the two-day losing streak that had cost the market more than 60 points or 3 percent along the way, the Indonesian stock market has now finished higher in three straight sessions to erase most of those losses. Now the Jakarta Composite Index is tipped to extend those gains again on Monday, although the positive movement will be capped by a retreat among the commodities.
The global forecast for Monday is broadly positive, thanks to a sharp decline in the price of crude oil. Good news out of the U.S. financial sector also helped to allay concerns about the health of the world's largest economy, which was enough to send Wall Street higher. Also, many of the Asian markets are embroiled in lengthy losing streak, which may make share pries very interesting to the bargain hunters.
The JCI finished sharply higher on Friday, riding the strength from its commodity plays. For the day, the index gained 32.24 points or 1.54 percent to close at 2,120.49 after trading between 2,108.76 and 2,127.21. Among the gainers, resource firm PT International Nickel Indonesia added 3.9 percent and PT Bumi Resources gained 2.8 percent.
Wall Street offers a sharply positive lead as stocks turned in a standout performance on Friday, after a sharp drop in oil prices prompted investors to look for bargains. Strength in the financial sector also contributed to the buying interest on Wall Street.
Investors were encouraged when oil prices pulled back sharply during the day, more than offsetting the price increase in the previous session. The pullback by the price of oil was partly due to a rebound in the value of the U.S. dollar. After ending Thursday's trading up $5.62 at $121.18 a barrel, crude for October delivery closed down $6.59 at $114.59 a barrel.
Meanwhile, state-run Korea Development Bank is considering the acquisition of Lehman Brothers (LEH), according to various reports on Friday. Korea Development Bank, or KDB, reportedly said it is open to mergers or acquisitions of both domestic and foreign companies to cover up its weak areas as the Korean government intends to privatize the company by 2012.
Also, Federal Reserve Chairman Ben Bernanke spoke at the Federal Reserve Bank of Kansas City's Annual Economic Symposium in Jackson Hole, Wyoming earlier in the day, calling the current policy and economic environment "one of the most challenging" in recent memory. "Although we have seen improved functioning in some markets, the financial storm that reached gale force some weeks before our last meeting here in Jackson Hole has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment," Bernanke said.
The major averages saw notable gains throughout the session, closing just below their intraday highs. The Dow closed up 197.85 points or 1.7 percent at 11,628.06, the Nasdaq closed up 34.33 points or 1.4 percent at 2,414.71 and the S&P 500 closed up 14.47 points or 1.1 percent at 1,292.19. For the week, The Nasdaq was down 1.5 percent, while the Dow and the S&P 500 posted weekly losses of 0.3 percent and 0.5 percent, respectively.
In corporate news, PT Bank UOB Indonesia saw a 12.7 percent increase in net profit, the bank said over the weekend, standing at 109.7 billion rupiah in the first half of this year versus 97.3 billion rupiah in the same period last year. Credits grew 57 percent to 6.98 trillion rupiah by June this year from 4.43 trillion rupiah a year earlier, and its net interest income grew 18 percent to 169 billion rupiah in the first six months of this year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.