Rally May Stall For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has moved higher in three straight sessions, collecting more than 180 points or 2.6 percent along the way. The Jakarta Composite Index now rests just above the 7,060-point plateau although investors may lock in gains on Monday.

The global forecast for the Asian markets is soft, with oil and technology stocks likely to drag the bourses lower. The European and U.S. markets finished with mild losses and the Asian markets figure to follow suit.

The JCI finished sharply higher on Friday following gains from the financial shares, telecoms and resource stocks.

For the day, the index jumped 95.63 points or 1.37 percent to finish at 7,063.58 after trading between 6,987.80 and 7,084.62.

Among the actives, Bank CIMB Niaga rallied 2.62 percent, while Bank Mandiri jumped 2.50 percent, Bank Danamon Indonesia collected 1.98 percent, Bank Negara Indonesia was up 1.75 percent, Bank Central Asia strengthened 1.79 percent, Bank Rakyat Indonesia accelerated 3.14 percent, Indosat Ooredoo Hutchison soared 3.38 percent, Indocement skidded 1.02 percent, Semen Indonesia surged 3.61 percent, Indofood Sukses Makmur added 0.83 percent, United Tractors climbed 1.03 percent, Astra International rose 0.68 percent, Energi Mega Persada gained 0.53 percent, Astra Agro Lestari increased 1.41 percent, Aneka Tambang improved 1.63 percent, Vale Indonesia skyrocketed 5.50 percent, Timah sank 0.57 percent and Bumi Resources advanced 1.30 percent.

The lead from Wall Street is weak as the major averages opened higher on Friday but faded throughout the day and ended mildly under water.

The Dow shed 45.24 points or 0.12 percent to finish at 39,118.86, while the NASDAQ slumped 126.10 points or 0.71 percent to close at 17,732.60 and the S&P 500 sank 22.39 points or 0.41 percent to end at 5,460.48.

For the week, the NASDAQ rose 0.2 percent but the Dow and the S&P 500 both eased 0.1 percent. However, the NASDAQ and the S&P 500 posted substantial gains for the first half of 2024.

The early strength on Wall Street followed a Commerce Department report showing inflation in May matched estimates, generating renewed optimism about the outlook for interest rates.

The subsequent pullback by the markets may have reflected a negative reaction to a turnaround by treasury yields, which initially moved lower following the release of the data but subsequently rebounded firmly into positive territory.

Oil prices showed a modest move to the downside on Friday, coming down from a two-month high on profit taking. West Texas Intermediate crude for August delivery dipped $0.20 or 0.2 percent to $81.54 a barrel.

Closer to home, Indonesia will release June figures for consumer prices later today, with overall inflation expected to rise 0.06 percent on month and 2.7 percent on year. That follows the 0.03 percent monthly contraction and the 2.84 percent annual increase in May. Core CPI is tipped to advance 1.96 percent on year, up from 1.93 percent in the previous month.