Indonesia Stock Market Predicted To Open In The Red

The Indonesia stock market on Friday ended the two-day slide in which it had slumped almost 50 points or 0.8 percent. The Jakarta Composite Index now rests just beneath the 6,900-point plateau and it’s looking at another soft start again on Monday.

The global forecast for the Asian markets is soft on lingering concerns over the outlook for interest rates following the recent batch of data. The European markets were down and the U.S. bourses were mixed and the Asian markets also figure to open in the red.

The JCI finished barely higher on Friday following mixed performances from the financial shares and the resource stocks.

For the day, the index perked 0.05 points or 0.00 percent to finish at 6,895.71.

Among the actives, Bank Danamon Indonesia retreated 1.35 percent, while Bank CIMB Niaga added 0.41 percent, Bank Negara Indonesia skidded 0.80 percent, Bank Central Asia collected 0.29 percent, Bank Mandiri improved 1.23 percent, Bank Rakyat Indonesia rose 0.21 percent, Indosat Ooredoo Hutchison strengthened 1.56 percent, Indocement plunged 3.51 percent, Semen Indonesia declined 1.33 percent, United Tractors dipped 0.10 percent, Astra International shed 0.44 percent, Energi Mega Persada rallied 1.35 percent, Aneka Tambang dropped 0.95 percent, Vale Indonesia sank 0.73 percent, Timah lost 0.41 percent, Bumi Resources gained 0.71 percent and Astra Agro Lestari and Indofood Suskes were unchanged.

The lead from Wall Street is mixed as the major averages opened in the red on Friday, although the Dow managed to break into the positive territory and finish mildly in the green.

The Dow climbed 129.79 points or 0.39 percent to finish at 33,826.69, while the NASDAQ slumped 68.53 points or 0.58 percent to close at 11,787.27 and the S&P 500 fell 11.32 points or 0.28 percent to end at 4,079.09. For the week, the Dow eased 0.1 percent, the NASDAQ rose 0.6 percent and the S&P dipped 0.3 percent.

The early weakness on Wall Street reflected ongoing concerns about the outlook for interest rates following the week’s batch of economic data, which has led to worries the Federal Reserve could raise rates higher than currently anticipated.

Recent comments from Fed officials have added to the concerns, with some suggesting the central bank could raise rates by another 50 basis points next month.

The recovery attempt came as treasury yields showed a notable turnaround, with the benchmark ten-year yield pulling back off its highest levels in well over a month.

Crude oil prices moved sharply lower on Friday, extending its recent losing streak to four days as traders worried about the impact of rate hikes on energy demand. West Texas Intermediate tumbled $2.15 or 2.7 percent to $76.34 per barrel. For the week, oil slumped 4.2 percent.