Indonesia Bourse Expected To Give Up Support At 7,300 Points

(RTTNews) - The Indonesia stock market on Friday ended the two-day winning streak in which it had advanced more than 80 points or 1.1 percent. The Jakarta Composite Index now sits just beneath the 7,310-point plateau and the losses may accelerate on Monday.

The global forecast for the Asian markets is brutal on concerns of an economic slowdown in the United States. The European and U.S. markets were sharply lower and the Asian bourses are expected to open in similar fashion.

The JCI finished slightly lower on Friday following mixed performances from the financial shares, resource stocks and cement companies.

For the day, the index shed 17.86 points or 0.24 percent to finish at 7,308.12 after trading between 7,264.01 and 7,337.06.

Among the actives, Bank CIMB Niaga added 0.54 percent, while Bank Mandiri collected 0.74 percent, Bank Danamon Indonesia shed 0.78 percent, Bank Negara Indonesia increased 0.49 percent, Bank Central Asia retreated 1.69 percent, Bank Rakyat Indonesia sank 0.84 percent, Indosat Ooredoo Hutchison plunged 3.27 percent, Indocement fell 0.34 percent, Semen Indonesia rose 0.26 percent, Indofood Sukses Makmur slumped 0.81 percent, United Tractors gained 0.39 percent, Astra International climbed 1.05 percent, Energi Mega Persada tumbled 2.68 percent, Astra Agro Lestari lost 0.41 percent, Jasa Marga skidded 0.93 percent, Vale Indonesia declined 1.57 percent, Timah improved 0.51 percent, Bumi Resources rallied 1.33 percent and Bank Maybank Indonesia and Aneka Tambang were unchanged.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained well under water throughout the trading day.

The Dow plummeted 610.74 points or 1.51 percent to finish at 39,737.26, while the NASDAQ tumbled 417.94 points or 2.43 percent to close at 16,776.16 and the S&P dropped 100.12 points or 1.84 percent to end at 5,346.56. For the week, the NASDAQ plummeted 3.4 percent, and the S&P 500 and the Dow both shed 2.1 percent.

Concerns about the outlook for the U.S. economy continued to weigh on Wall Street following the release of a closely watched Labor Department report showing employment increased by much less than expected in the month of July.

While weaker than expected economic data has been a positive for the markets amid expectations it would convince the Federal Reserve to lower interest rates, traders are concerned the Fed has waited too long and could spur a U.S. recession.

Negative sentiment was also generated in reaction to the latest earnings news, with companies like Intel (INTC) and online retail giant Amazon (AMZN) leading the way lower.

Crude oil prices fell sharply to a two-month low on Friday, sliding for a second successive session on rising concerns about the outlook for demand due to slowing growth in the U.S. West Texas Intermediate Crude oil futures for September fell $2.79 or 3.66 percent at $73.52 a barrel.

Closer to home, Indonesia will provide Q2 data for gross domestic product later today; in the previous three months, GDP was down 0.83 percent on quarter and up 5.11 percent on year.