Indonesia Stock Market May Reclaim 7,000-Point Level

(RTTNews) - The Indonesia stock market has moved lower in three straight sessions, retreating almost 280 points or 3.9 percent in that span. The Jakarta Composite Index now sits just above the 6,970-point plateau although it's due for support on Monday.

The global forecast for the Asian markets is cautiously optimistic on an improved outlook for interest rates. The European and U.S. markets were mostly higher and the Asian bourses are likely to follow that lead.

The JCI finished modestly lower again on Friday following losses from the food companies and mixed performances from the financial shares and resource stocks.

For the day, the index dropped 63.40 points or 0.90 percent to finish at 6,970.74 after trading between 6,959.23 and 7,102.22.

Among the actives, Bank CIMB Niaga tanked 2.86 percent, while Bank Mandiri collected 0.43 percent, Bank Negara Indonesia tumbled 2.00 percent, Bank Central Asia spiked 2.78 percent, Bank Rakyat Indonesia sank 0.91 percent, Indosat Ooredoo Hutchison rose 0.25 percent, Semen Indonesia plummeted 5.42 percent, Indofood Sukses Makmur surrendered 2.89 percent, United Tractors dropped 0.90 percent, Astra International shed 0.69 percent, Energi Mega Persada plunged 5.49 percent, Astra Agro Lestari advanced 0.86 percent, Aneka Tambang retreated 1.68 percent, Vale Indonesia dipped 0.20 percent, Timah declined 1.65 percent, Bumi Resources surged 3.41 percent and Bank Danamon Indonesia and Indocement were unchanged.

The lead from Wall Street is fairly positive as the major averages opened higher on Friday, slumped midday but rallied to finish mixed.

The Dow surged 574.82 points or 1.51 percent to finish at 38,686.32, while the NASDAQ dipped 2.08 points or 0.01 percent to close at 16,735.02 and the S&P 500 gained 42.03 points or 0.80 percent to end at 5,277.51.

For the week, the S&P 500 fell 0.5 percent and the Dow and the NASDAQ slumped by 1.0 percent and 1.1 percent, respectively - although the major averages all posted strong gains for the month of May.

The mostly higher close on Wall Street followed the release of a highly anticipated Commerce Department data showing consumer prices in the U.S. increased in line with estimates in April, while core consumer prices edged up slightly less than expected.

The readings on inflation, which are said to be preferred by the Federal Reserve, generated optimism that investors may see a rate cut in the coming months.

Oil prices fell on Friday, extending losses to a third straight day amid concerns about the outlook for demand - although optimism over the extension of OPEC production cuts limited the downside. West Texas Intermediate crude oil futures for July slipped $0.92 at $76.99 a barrel.

Closer to home, Indonesia will release May figures for consumer prices later today. In April, overall inflation was up 0.25 percent on month and 3.00 percent on year, while core CPI rose an annual 1.82 percent.