Higher Open Anticipated For Indonesia Stock Market

The Indonesia stock market has moved lower in back-to-back sessions, falling more than 45 points or 0.8 percent along the way. The Jakarta Composite Index now sits just beneath the 5,930-point plateau although it’s expected to stop the bleeding on Monday.

The global forecast for the Asian markets is positive on optimism for the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

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

For the day, the index sank 41.93 points or 0.70 percent to finish at 5,928.31 after trading between 5,922.49 and 5,994.33.

Among the actives, Bank Danamon Indonesia sank 0.78 percent, while Bank CIMB Niaga dropped 1.00 percent, Bank Negara Indonesia declined 1.75 percent, Bank Central Asia slid 0.39 percent, Bank Mandiri tanked 2.06 percent, Bank Rakyat Indonesia lost 1.46 percent, Indosat skidded 1.20 percent, Indocement tumbled 1.80 percent, Semen Indonesia surrendered 2.24 percent, Indofood Suskes shed 0.76 percent, United Tractors dipped 0.23 percent, Astra International plunged 1.84 percent, Astra Agro Lestari fell 0.26 percent, Vale Indonesia soared 2.82 percent, Timah plummeted 4.24 percent, Bumi Resources retreated 1.56 percent and Aneka Tambang was unchanged.

The lead from Wall Street is upbeat as the major averages opened mostly higher on Friday and remained in the green throughout the trading day.

The Dow jumped 229.26 points or 0.66 percent to finish at 34,777.76, while the NASDAQ spiked 119.44 points or 0.88 percent to end at 13,752.24 and the S&P 500 added 30.98 points or 0.74 percent to close at 4,232.60. For the week, the Dow surged 2.7 percent, the NASDAQ fell 1.5 percent and the S&P 500 gained 1.2 percent.

The strength on Wall Street followed the closely watched Labor Department report showing weaker than expected job growth in April. Traders reacted positively to this because the it reinforced the view the Federal Reserve will leave ultra-easy monetary policy in place for the foreseeable future.

The data led to a particularly strong upward move by high-growth tech stocks, which are seen as more susceptible to higher interest rates.

Crude oil prices moved higher on Friday on optimism for increased demand in Europe and the U.S. although gains were capped by coronavirus concerns in Asia. West Texas Intermediate Crude oil futures for June ended up $0.19 or 0.3 percent at $64.90 a barrel. WTI crude futures gained about 2.1 percent in the week.