The Indonesia stock market rebounded on Friday, one day after ending the two-day winning streak in which it had gathered almost 60 points or 0.9 percent. The Jakarta Composite Index now sits just above the 6,720-point plateau although it's expected to open under pressure again on Monday.
The global forecast for the Asian is negative on renewed COVID-19 concerns and the resulting drop in crude oil prices. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The JCI finished sharply higher on Friday following gains from the financial shares and resource stocks, while the cement companies were down.
For the day, the index spiked 83.79 points or 1.26 percent to finish at 6,720.26 after trading between 6,651.78 and 6,720.99.
Among the actives, Bank Danamon Indonesia climbed 1.22 percent, while Bank CIMB Niaga improved 1.46 percent, Bank Negara Indonesia gathered 1.44 percent, Bank Central Asia rose 0.34 percent, Bank Mandiri collected 1.05 percent, Bank Rakyat Indonesia accelerated 2.39 percent, Indosat gained 1.47 percent, Indocement retreated 1.69 percent, Semen Indonesia slid 0.28 percent, United Tractors shed 0.44 percent, Astra International perked 0.40 percent, Astra Agro Lestari fell 0.24 percent, Aneka Tambang soared 2.58 percent, Vale Indonesia spiked 2.54 percent, Timah jumped 1.88 percent, Bumi Resources surged 4.55 percent and Indofood Suskes was unchanged.
The lead from Wall Street is mixed as the Dow opened lower on Friday and stayed that way and the NASDAQ opened higher and closed at a record high. The S&P 500 opened slightly lower, bounced back and forth across the unchanged line and ended slightly in the red.
The Dow dropped 268.92 points or 0.75 percent to finish at 35,601.98, while the NASDAQ added 63.74 points or 0.40 percent to close at 16,057.44 and the S&P 500 eased 6.58 points or 0.14 percent to end at 4,697.96. For the week, the NASDAQ jumped 1.2 percent, the S&P rise 0.3 percent and the Dow lost 1.4 percent.
Renewed COVID-19 concerns weighed on cyclical stocks as a brutal fourth wave of the coronavirus pandemic sweeps across Europe. Austria has announced a full national COVID-19 lockdown starting today, while Germany has announced more restrictions on unvaccinated people.
The potential of more European countries reinstating full lockdowns sparked worries the pandemic could once again weigh down the global economy.
Meanwhile, the tech-heavy NASDAQ benefitted from continued strength among technology stocks following some upbeat earnings news from companies such as software firm Intuit (INTU) and cybersecurity company Palo Alto Networks (PANW).
Crude oil prices plunged sharply on Friday amid rising concerns about the outlook for energy demand following a surge in COVID-19 cases and fresh restrictions in some European countries. West Texas Intermediate Crude oil futures for December settled at $75.94 a barrel, losing $2.47 or 3.2 percent.
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