(RTTNews) – The Indonesian stock market ended a two-day winning streak in which it jumped more than 170 points or 3% on Friday. The Jakarta Composite Index now sits just below the 6,230 point plateau, although it is expected to rebound again on Monday.
Global forecasts for Asian markets are mixed to higher due to easing inflation fears and support from crude oil. European markets were down and US stock markets were up and Asian markets should follow this latest lead.
JCI ended slightly lower on Friday as cement and communications companies were down and financials and resource stocks were also mostly in the red.
For the day, the index lost 58.09 points or 0.92% to end at 6,228.85 after trading between 6,202.91 and 6,272.06.
Among assets, Bank Danamon Indonesia fell 1.50%, while Bank Negara Indonesia fell 0.47%, Bank Central Asia lost 3.43%, Bank Mandiri fell 0.81%, Bank Rakyat Indonesia collected 1.30%, Indosat plunged 5.64%, Indocement lost 5.24%, Semen Indonesia slipped 1.22 percent, Indofood Suskes 1.57 percent, Astra International fell 0.91 percent, Astra Agro Lestari grew 2.30 percent, Aneka Tambang fell 3.06 percent, Vale Indonesia fell 1.53 percent, Timah sank 1.98 percent cent, Bumi Resources jumped 3.03 percent, Energi Mega Persada fell 4.69% and Bank CIMB Niaga and United Tractors remained unchanged.
Wall Street’s lead is largely positive as major averages lifted the uncertainties from early Friday to end solidly in positive territory.
The Dow Jones climbed 482.56 points or 1.43% to close at 34,326.46, while the NASDAQ jumped 118.10 points or 0.82% to close at 14,556.70 and the S&P 500 gained 49.50 points or 1.15% to end at 4,357.04.
For the week, the Dow Jones slipped 1.4%, the NASDAQ lost 3.2% and the S&P fell 2.2%. For the month of September, the Dow Jones fell 4.3%, and the NASDAQ and S&P 500 fell 5.3% and 4.8%, respectively.
The higher closing on Wall Street came as the bargain hunt triumphed over concerns about inflation and the reduction in asset purchases by the Federal Reserve. Major averages showed wild swings in morning trading but ultimately supported a bullish move as traders resumed stocks to reduced levels after a disappointing September.
A prolonged pullback in Treasury yields may also have sparked buying interest on Wall Street, with the ten-year yield continuing to lose ground after hitting a three-month closing high on Wednesday.
Crude oil prices recovered from a weak start and stabilized higher on Friday ahead of this week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC). West Texas Intermediate crude oil futures for November rose $ 0.85 or 1.1% to $ 75.88 a barrel. WTI crude futures gained 2.6% on the week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.