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More Pain Predicted For Indonesia Stock Market

The Indonesia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had dropped almost 50 points or 1 percent. The Jakarta Composite Index now rests just above the 5,080-point plateau and it's expected to sink again on Monday.

The global forecast for the Asian markets is soft on rising tensions between the United States and China. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The JCI finished sharply lower on Friday following losses from the financial shares and cement stocks, while the resource companies were mixed.

For the day, the index skidded 62.02 points or 1.21 percent to finish at 5,082.99 after trading between 5,074.49 and 5,149.59.

Among the actives, Bank Danamon Indonesia skidded 1.41 percent, while Bank Mandiri tumbled 1.75 percent, Bank Central Asia retreated 1.61 percent, Bank Negara Indonesia tanked 2.12 percent, Indosat dropped 1.18 percent, Indocement declined 1.41 percent, Semen Indonesia surrendered 1.85 percent, United Tractors plunged 3.11 percent, Indofood Suskes plummeted 3.72 percent, Aneka Tambang fell 0.72 percent, Vale Indonesia advanced 0.92 percent, Timah was down 1.45 percent and Bumi Resources was unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday and remained firmly in the red throughout the session.

The Dow shed 182.41 points or 0.68 percent to finish at 26,469.89, while the NASDAQ lost 98.22 points or 0.94 percent to end at 10,363.18 and the S&P 500 fell 20.03 points or 0.62 percent to close at 3,215.63. For the week, the Dow sank 0.8 percent, the NASDAQ fell 1.3 percent and the S&P eased 0.3 percent.

The weakness on Wall Street also came amid concerns about rising tensions between the U.S. and China after Beijing decided to revoke the license for the establishment and operation of the U.S. Consulate General in Chengdu.

The move comes just days after the U.S. government ordered China to close its consulate in Houston, Texas, amid accusations Chinese diplomats aided in economic espionage and the attempted theft of scientific research.

Worries about the continued spike in coronavirus cases also generated some negative sentiment, with daily new cases rising in the U.S. by at least 5 percent in 25 states.

Crude oil prices edged higher Friday as stronger than expected economic data from Europe and the U.S. helped ease worries about energy demand outlook. West Texas Intermediate crude oil futures for September ended higher by $0.22 or 0.5 percent at $41.29 a barrel.

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