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Continued Consolidation Called For Indonesia Stock Market

The Indonesia stock market on Thursday ended the eight-day winning streak in which it had surged almost 250 points or 5 percent. The Jakarta Composite Index now sits just above the 5,100-point plateau and it's likely in store for more pain on Friday.

The global forecast for the Asian markets is negative on rising coronavirus cases and falling hopes for stimulus. The European and U.S. markets were down and the Asian bourses are predicted to follow suit.

The JCI finished sharply lower on Thursday following losses from the financial shares and resource stocks.

For the day, the index retreated 70.95 points or 1.37 percent to settle at the daily low of 5,105.15 after peaking at 5,182.53.

Among the actives, Bank Danamon Indonesia dropped 0.84 percent, while Bank Mandiri tanked 3.03 percent, Bank CIMB Niaga skidded 1.30 percent, Bank Negara Indonesia lost 3.43 percent, Bank Rakyat Indonesia fell 1.49 percent, Ban Central Asia was down 1.95 percent, Indosat tumbled 2.39 percent, Indocement climbed 1.30 percent, Semen Indonesia retreated 2.15 percent, Indofood Suskes declined 1.05 percent, Astra Agro Lestari sank 0.90 percent, Aneka Tambang surrendered 2.09 percent, Vale Indonesia plummeted 5.49 percent, Timah plunged 6.74 percent and Bumi Resources was unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Friday, then cut into the losses as the session progressed but still finished in the red for the second straight day.

The Dow fell 19.80 points or 0.07 percent to finish at 28,494.20, while the NASDAQ lost 54.86 points or 0.47 percent to end at 11,713.87 and the S&P 500 eased 5.33 points or 0.15 percent to close at 3,483.34.

The initial sell-off on Wall Street came amid uncertainty about a new stimulus bill after Treasury Secretary Steven Mnuchin suggested on Wednesday that a new relief package is not likely to pass before next month's elections.

Early selling pressure was also generated by a Labor Department report showing an unexpected increase in first-time claims for U.S. jobless benefits last week.

However, stocks rebounded well off their lows after Mnuchin told reporters that he and President Donald Trump are committed to getting a stimulus deal done.

Crude oil prices rebounded from early weakness to pare most of their losses on Thursday after data showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for November ended down $0.08 or 0.2 percent at $40.96 a barrel.

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