Rebound Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market headed south again on Friday, one day after ending the three-day losing streak in which it had dropped more than 200 points or 2.6 percent. The Jakarta Composite Index now rests just above the 7,915-point plateau although it may bounce higher again on Monday.

The global forecast for the European markets is cautiously optimistic on easing economic tensions between the United States and China. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

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

For the day, the index plunged 209.10 points or 2.57 percent to finish at 7,915.66 after trading between 7,854.31 and 8,140.60.

Among the actives, Bank CIMB Niaga tumbled 1.76 percent, while Bank Mandiri dropped 0.98 percent, Bank Danamon Indonesia sank 0.85 percent, Bank Negara Indonesia declined 1.30 percent, Bank Central Asia spiked 2.74 percent, Bank Rakyat Indonesia shed 0.85 percent, Indosat Ooredoo Hutchison plunged 4.36 percent, Semen Indonesia slumped 1.24 percent, Indofood Sukses Makmur gained 0.71 percent, United Tractors rallied 3.75 percent, Astra International tanked 2.17 percent, Energi Mega Persada cratered 12.20 percent, Astra Agro Lestari retreated 1.86 percent, Aneka Tambang added 0.58 percent, Vale Indonesia stumbled 4.74 percent, Bumi Resources plummeted 5.88 percent and Timah and Indocement were unchanged.

The lead from Wall Street is positive as the major averages opened lower on Friday and hugged the line before rallying midday to finish solidly in the green.

The Dow jumped 238.41 points or 0.52 percent to finish at 46,190.61, while the NASDAQ climbed 117.47 points or 0.52 percent to end at 22,679.97 and the S&P 500 added 34.94 points or 0.53 percent to close at 6,664.01.

The strength that emerged on Wall Street came as the concerns about bad loans that dragged the markets lower on Thursday seemed to evaporate as quickly as they materialized.

Stocks also benefited from easing concerns about the trade dispute between the U.S. and China following comments from President Donald Trump, who admitted that the high tariffs he threatened to impose on China are probably not sustainable.

Crude oil prices rose on Friday after Trump suddenly reversed his hardline stance on China, suggesting warmer trade relations could lead to an increase in energy demand. West Texas Intermediate crude for November delivery was up by $0.20 or 0.35 percent at $57.66 per barrel.