Indonesia Stock Market May Be Stuck In Neutral On Monday

The Indonesia stock market has moved higher in two straight sessions, collecting more than 10 points or 0.2 percent along the way. The Jakarta Composite Index now rests just shy of the 6,940-point plateau and it’s expected to see little movement again on Monday.

The global forecast for the Asian markets is mixed and flat on ongoing concerns over the outlook for interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to follow the latter lead.

The JCI finished barely higher on Friday following mixed performances from the financial shares and resource stocks, while the cement companies were soft.

For the day, the index picked up 2.06 points or 0.03 percent to finish at 6,939.89.

Among the actives, Bank CIMB Niaga lost 0.59 percent, while Bank Mandiri collected 0.42 percent, Bank Negara Indonesia spiked 1.98 percent, Bank Central Asia shed 0.56 percent, Indosat Ooredoo Hutchison jumped 1.55 percent, Indocement retreated 1.24 percent, Semen Indonesia tumbled 1.91 percent, Indofood Suskes tanked 1.85 percent, United Tractors eased 0.18 percent, Astra International strengthened 1.22 percent, Energi Mega Persada slumped 1.44 percent, Astra Agro Lestari dropped 0.99 percent, Aneka Tambang fell 0.27 percent, Vale Indonesia added 0.44 percent, Timah declined 1.44 percent and Bumi Resources, Bank Danamon Indonesia, Perusahaan Gas Negara and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is murky as the major averages opened higher on Friday but faded into the red as the day progressed, although the NASDAQ managed to peek back up into the green by the close.

The Dow shed 158.80 points or 0.47 percent to finish at 33,507.50, while the NASDAQ rose 18.02 points or 0.14 percent to close at 13,219.32 and the S&P 500 fell 11.65 points or 0.27 percent to end at 4,288.05.

The weakness that emerged on Wall Street came on concerns over the prospect of a government shutdown, although that was avoided at the last minute.

The outlook for interest rates also rendered the mood cautious, prompting investors to lighten commitments.

In economic news, the Commerce Department said personal income in the U.S. increased in line with estimates in August. Also, core CPI slowed in August and overall inflation ticked slightly higher – both in line with forecasts.

Crude oil futures settled lower on Friday, with a bit of profit taking and uncertainty about the outlook for energy demand weighing on prices. West Texas Intermediate Crude oil futures for November ended lower by $0.92 or 1 percent at $90.79 a barrel. WTI crude futures added 0.8 percent in the week and 8.5 percent in September.

Closer to home, Indonesia will provide September results for consumer prices later today, with overall inflation expected to rise 0.15 percent on month and 2.25 percent on year. That follows the 0.02 percent monthly decline and the 3.27 percent yearly gain in August. Core CPI is seen higher by an annual 2.10 percent, easing from 2.18 percent in the previous month.