Indonesia Stock Market Predicted To Open Under Pressure

The Indonesia stock market on Friday wrote a finish to the two-day slide in which it had fallen more than 40 points or 0.6 percent. The Jakarta Composite Index now rests just above the 6,700-point plateau although it's expected to see renewed consolidation on Monday.

The global forecast for the Asian markets suggests mild consolidation following Friday's mixed jobs report from the United States. The European markets were mixed and the U.S. bourse were down and the Asian markets figure to split the difference.

The JCI finished modestly higher on Friday following gains from the financials, losses from the cement stocks and a mixed picture from the resource companies.

For the day, the index picked up 49.97 points or 0.72 percent to finish at 6,701.32 after trading between 6,647.71 and 6,712.15.

Among the actives, Bank Danamon Indonesia advanced 0.84 percent, while Bank CIMB Niaga collected 0.52 percent, Bank Negara Indonesia improved 1.80 percent, Bank Central Asia accelerated 2.34 percent, Bank Mandiri added 0.36 percent, Bank Rakyat Indonesia gained 0.72 percent, Indocement tumbled 1.79 percent, Semen Indonesia fell 0.35 percent, Indofood Suskes jumped 1.98 percent, United Tractors rallied 2.07 percent, Astra International rose 0.44 percent, Astra Agro Lestari spiked 2.84 percent, Vale Indonesia skidded 1.10 percent, Timah lost 0.35 percent, Bumi Resources climbed 1.49 percent and Indosat, Energi Mega Persada, Bakrie Sumatera Plantations and Aneka Tambang were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Friday and then saw wild swings both ways before finally finishing the session in the red.

The Dow dipped 4.84 points or 0.01 percent to finish at 36,231,66, while the NASDAQ sank 145.00 points or 0.96 percent to end at 14,935.90 and the S&P 500 fell 19.02 points or 0.41 percent to close at 4,677.03. For the week, the NASDAQ plunged 4.5 percent, the S&P slumped 1.9 percent and the Dow dipped 0.3 percent.

The continued pullback on Wall Street followed the release of the Labor Department's closely watched monthly jobs report. While the report showed much weaker than expected job growth in the month of December, the unemployment rate still fell by more than expected.

Economists have indicated the report is not likely to alter the Fed's plans to accelerate monetary policy normalization.

Traders subsequently seem concerned the Fed will be raising rates at a time of slowing economic growth as a result of the Omicron variant of the coronavirus.

Crude oil prices drifted lower on Friday, but still finished the week with a strong gain on supply concerns amid escalating unrest in Kazakhstan and outages in Libya. West Texas Intermediate Crude oil futures for February ended down by $0.56 or 0.7 percent at $78.90 a barrel. WTI Crude futures gained 4.9 percent in the week.

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