Indonesia Stock Market May See Additional Consolidation On Friday

Ahead of Thursday’s holiday for the Hindu New Year, the Indonesia stock market had snapped the two-day winning streak in which it had collected more than 100 points or 1.6 percent. The Jakarta Composite Index now rests just beneath the 6,870-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets is negative and volatile, responding to the ongoing Russian invasion of Ukraine and resulting sanctions. The European and U.S. markets were down and the Asian bourses figure to follow suit.

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

For the day, the index sank 53.04 points or 0.77 percent to finish at 6,868.40 after trading between 6,861.96 and 6,973.36.

Among the actives, Bank Danamon Indonesia retreated 1.24 percent, while Bank CIMB Niaga dropped 0.94 percent, Bank Negara Indonesia surrendered 1.89 percent, Bank Central Asia slumped 0.93 percent, Bank Mandiri fell 0.33 percent, Bank Rakyat Indonesia declined 1.51 percent, Indosat tanked 2.26 percent, Indocement plunged 3.09 percent, Semen Indonesia plummeted 5.28 percent, Indofood Suskes added 0.40 percent, United Tractors spiked 2.72 percent, Astra International tanked 3.07 percent, Energi Mega Persada rallied 2.89 percent, Bakrie Sumatera Plantations gained 0.85 percent, Astra Agro Lestari soared 4.46 percent, Aneka Tambang climbed 1.33 percent, Bumi Resources jumped 1.96 percent and Vale Indonesia and Timah were unchanged.

The lead from Wall Street is soft as the major averages opened higher on Thursday and bounced back and forth across the unchanged line before late selling pressure saw them finish firmly in the red.

The Dow dropped 96.69 points or 0.29 percent to finish at 33,794.66, while the NASDAQ tumbled 214.08 points or 1.56 percent to end at 13,537.94 and the S&P 500 fell 23.05 points or 0.53 percent to close at 4,363.49.

The volatility on the day came as traders kept an eye on developments in Ukraine as Russian forces continue to step up their attacks, forcing thousands of Ukrainians to flee the country.

Traders remain worried the sanctions imposed on Russia along with the subsequent surge in oil prices could derail the economic recovery even as the Federal Reserve prepares to begin raising interest rates.

Fed Chair Jerome Powell appeared before the Senate Banking Committee and reiterated the central bank is likely to raise rates by at least 25 basis points at its meeting later this month.

In economic news, the Labor Department noted a modest decrease in first-time claims for U.S. unemployment benefits last week. Also, the Institute for Supply Management reported a continued slowdown in the pace of growth in U.S. service sector activity in February.

U.S. crude oil prices drifted lower on Thursday, retreating from multi-year highs on speculation over a possible nuclear deal with Iran. West Texas Intermediate Crude oil futures for April ended down by 2.6 percent at $107.67 a barrel.