Indonesia Stock Market May Bounce Higher Again On Monday

The Indonesia stock market has finished lower in two of three trading days since the end of the seven-day winning streak in which it had advanced almost 150 points or 2.2 percent. The Jakarta Composite Index now sits just beneath the 7,130-point plateau and it’s likely to remain rangebound on Monday.

The global forecast for the Asian markets is upbeat on optimism for economic growth and easing inflation. The European and U.S. markets were firmly higher on Friday and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index lost 31.10 points or 0.43 percent to finish at 7,129.28.

Among the actives, Bank Danamon Indonesia lost 0.77 percent, while Bank Central Asia fell 0.31 percent, Bank Mandiri shed 0.59 percent, Bank Rakyat Indonesia retreated 0.69 percent, Indosat Ooredoo rallied 2.44 percent, Indocement advanced 0.78 percent, Semen Indonesia strengthened 1.44 percent, Indofood Suskes rose 0.38 percent, United Tractors dropped 0.94 percent, Energi Mega Persada declined 1.41 percent, Astra Agro Lestari dipped 0.26 percent, Aneka Tambang sank 0.89 percent, Vale Indonesia climbed 1.08 percent, Timah slumped 0.32 percent, Bumi Resources plummeted 6.99 percent and Astra International, Bank CIMB Niaga and Bank Negara Indonesia were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Friday and accelerated as the session progressed, ending near daily highs.

The Dow surged 424/35 points or 1.27 percent to finish at 33,761.05, while the NASDAQ soared 267.29 points or 2.09 percent to end at 13,047.19 and the S&P 500 jumped 72.88 points or 1.73 percent to close at 4,280.15.

For the week, the S&P 500 skyrocketed 3.3 percent for its fourth straight weekly gain, while the NASDAQ spiked 3.1 percent and the Dow gained 2.9 percent.

Optimism that inflation has peaked contributed to the continued strength on Wall Street following tamer than expected readings last week on consumer and producer prices.

Adding to the positive sentiment about inflation, the Labor Department said U.S. import prices fell more than expected in July. Buying interest was also generated by a report from the University of Michigan showing U.S. consumer sentiment has improved much more than expected in August.

Crude oil prices fell sharply on Friday after the Organization of the Petroleum Exporting Countries (OPEC) lowered its oil demand forecast for 2022. West Texas Intermediate Crude oil futures for September ended lower by $2.25 or 2.4 percent at $92.09 a barrel. For the week, WIT rose 3.5 percent.

Closer to home, Indonesia will see July numbers for imports, exports and trade balance later today. Imports are expected to surged 37.3 percent on year, up from 21.98 percent in June. Exports are called higher by an annual 29.73 percent, down from 40.68 percent in the previous month. The trade surplus is pegged at $3.93 billion, down from $5.09 billion a month earlier.