The Indonesia stock market has finished lower in three straight sessions, sinking more than 80 points or 1.3 percent along the way. The Jakarta Composite Index now sits just beneath the 6,010-point plateau and it's tipped to open under pressure again on Monday.
The global forecast for the Asian is soft on concerns over the outlook for interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets are tipped to follow suit.
The JCI finished sharply lower on Friday following losses from the financial shares and resource stocks, in particular.
For the day, the index retreated 61.33 points or 1.01 percent to finish at 6,007.12 after trading between 5,944.05 and 6,070.42.
Among the actives, Bank Danamon Indonesia tanked 2.69 percent, while Bank CIMB Niaga skidded 1.08 percent, Bank Negara Indonesia sank 5.90 percent, Bank Central Asia eased 0.08 percent, Bank Rakyat Indonesia dropped 2.98 percent, Indosat soared 4.20 percent, Indocement fell 0.23 percent, Indofood Suskes plummeted 4.40 percent, United Tractors soared 3.52 percent, Astra International tumbled 1.96 percent, Astra Agro Lestari plunged 3.02 percent, Aneka Tambang declined 4.29 percent, Vale Indonesia cratered 5.69 percent, Timah added 0.33 percent, Bumi Resources surrendered 3.33 percent and Bank Mandiri, Semen Indonesia, Jasa Marga and Perusahaan Perseroan were unchanged.
The lead from Wall Street is decidedly negative as stocks opened lower on Friday and remained in the red throughout the session.
The Dow plunged 533.37 points or 1.58 percent to finish at 33,290.08, while the NASDAQ dropped 130.97 points or 0.92 percent to end at 14,030.38 and the S&P 500 sank 55.41 points or 1.31 percent to close at 4,166.45.
For the week, the Dow plunged 3.4 percent, the NASDAQ dipped 0.3 percent and the S&P fell 1.9 percent.
Concerns about the outlook for monetary policy continued to weigh on the markets following recent Federal Reserve comments. The Fed's forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.
In addition, Federal Reserve Bank of St Louis President James Bullard suggested that rates could be hiked as early as next year, touching off a wave of selling.
Crude oil prices moved higher on Friday amid optimism about energy demand in the U.S. thanks to reopening of businesses after lockdowns. West Texas Intermediate Crude oil futures for July rose $0.60 or 0.8 percent at $71.64 a barrel. WTI Crude oil futures gained 1 percent in the week.
For comments and feedback contact: editorial@rttnews.com
