Indonesia Stock Market Due For Consolidation

(RTTNews) - The Indonesia stock market has tracked higher in three straight sessions, collecting more than 100 points or 1.3 percent along the way. The Jakarta Composite Index now sits just above the 7,720-point plateau although the rally may stall on Monday.

The global forecast for the Asian markets is negative on concerns over the health of the world's economy. The European and U.S. markets were firmly lower and the Asian bourses are tipped to open in similar fashion.

The JCI finished modestly higher on Friday following mixed performances from the financial shares and resource stocks, while the cement companies were soft.

For the day, the index added 40.81 points or 0.53 percent to finish at 7,721.85 after trading between 7,683.70 and 7,754.48.

Among the actives, Bank CIMB Niaga dipped 0.26 percent, while Bank Mandiri climbed 1.05 percent, Bank Danamon Indonesia fell 0.38 percent, Bank Negara Indonesia surged 3.67 percent, Bank Central Asia collected 0.49 percent, Bank Rakyat Indonesia strengthened 1.46 percent, Bank Maybank Indonesia dropped 0.86 percent, Indosat Ooredoo Hutchison lost 0.46 percent, Indocement skidded 1.10 percent, Semen Indonesia eased 0.25 percent, Indofood Sukses Makmur added 0.72 percent, United Tractors tumbled 1.73 percent, Astra International shed 0.49 percent, Energi Mega Persada advanced 0.99 percent, Astra Agro Lestari soared 3.92 percent, Aneka Tambang sank 0.74 percent, Jasa Marga tanked 2.34 percent, Vale Indonesia rose 0.27 percent, Timah gained 0.60 percent and Bumi Resources slumped 1.01 percent.

The lead from Wall Street is weak as the major averages opened mixed but quickly turned lower and spent the rest of the day under water, finishing with heavy losses.

The Dow stumbled 410.39 points or 1.01 percent to finish at 40,345.41, while the NASDAQ plunged 436.87 points or 2.55 percent to close at 16,690.83 and the S&P 500 sank 94.99 points or 1.73 percent to end at 5,408.42.

For the week, the NASDAQ plummeted 5.8 percent, the Dow tanked 2.9 percent and the S&P tumbled 4.3 percent.

The sell-off on Wall Street came amid concerns about the outlook for the U.S. economy after the Labor Department released a closely watched report showing employment rose by less than expected in the month of August.

While the data is seen as increasing the chances of a 50-basis point interest rate cut by the Federal Reserve later this month, traders seemed worried the central bank may have waited too long to prevent the economy from slipping into a recession.

Oil prices fell to an 18-month low on Friday, weighed down persisting concerns about the outlook for oil demand following the disappointing jobs report. West Texas Intermediate Crude oil futures for October ended down by $1.48 or 2.1 percent at $67.67 a barrel.