Indonesia Bourse Expected To Remain Rangebound

The Indonesia stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day winning streak in which it had surged more than 170 points or 3 percent. The Jakarta Composite Index now rests just above the 6,480-point plateau although it figures to head south again on Monday.

The global forecast for the Asian markets is soft following disappointing jobs data out of the United States, although support from crude oil is expected to limit the downside. The European and U.S. markets saw mild losses and the Asian markets figure to follow suit.

The JCI finished sharply higher on Friday following gains from the financial shares and resource stocks.

For the day, the index jumped 65.37 points or 1.02 percent to finish at 6,481.77 after trading between 6,436.52 and 6,497.66.

Among the actives, Bank Danamon Indonesia collected 0.35 percent, while Bank CIMB Niaga added 0.48 percent, Bank Negara Indonesia spiked 2.93 percent, Bank Central Asia gathered 1.82 percent, Bank Mandiri rallied 2.99 percent, Bank Rakyat Indonesia improved 0.97 percent, Indosat sank 0.78 percent, United Tractors advanced 0.87 percent, Astra International soared 3.51 percent, Astra Agro Lestari jumped 1.78 percent, Aneka Tambang gained 0.43 percent, Vale Indonesia climbed 1.47 percent, Timah improved 0.95 percent, Energi Mega Persada dropped 0.79 percent and Bumi Resources, Perusahaan Gas, Indocement, Semen Indonesia and Indofood Suskes were unchanged.

The lead from Wall Street suggests mild consolidation as the major averages spent most of Friday's session bouncing back and forth across the unchanged line before finally heading lower towards the end of the day.

The Dow eased 8.65 points or 0.02 percent to finish at 34.746.25, while the NASDAQ sank 74.46 points or 0.51 percent to close at 14.579.54 and the S&P 500 fell 8.42 points or 0.19 percent to end at 4,391.34. For the week, the Dow rose 1.2 percent, the NASDAQ added 0.1 percent and the S&P perked 0.8 percent.

The choppy trading on Wall Street came after the Labor Department's closely watched monthly jobs report showed weaker than expected job growth in September, although the jobless rate fell more than anticipated.

The data led to some uncertainty about the outlook for monetary policy, although most economists agree the disappointing job growth will not dissuade the Federal Reserve from scaling back stimulus.

Crude oil futures jumped Friday after surging past $80 a barrel for the first time in seven years amid tighter supplies and signs of increasing demand. West Texas Intermediate Crude oil futures for November jumped $1.05 or 1.3 percent at $79.35 a barrel after climbing to a high of $80.11 a barrel. WTI crude futures gained 4.6 percent in the week, gaining for a seventh straight week.

Closer to home, Indonesia will see August numbers for retail sales later today; in July, sales were down 2.9 percent on year.

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