Indonesia Stock Market May Give Up Support At 6,800 Points

(RTTNews) - The Indonesia stock market has finished lower in six straight sessions, retreating more than 250 points or 3.5 percent along the way. The Jakarta Composite Index now rests just above the 6,810-point plateau and it's expected to open lower again on Monday.

The global forecast for the Asian markets is negative on rising fears of recession and higher interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

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

For the day, the index dropped 66.09 points or 0.96 percent to finish at 6,814.53.

Among the actives, Bank Danamon Indonesia dipped 0.33 percent, while Bank CIMB Niaga collected 0.47 percent, Bank Negara Indonesia surrendered 3.71 percent, Bank Central Asia fell 0.30 percent, Bank Mandiri sank 0.79 percent, Bank Rakyat Indonesia retreated 1.84 percent, Indosat Ooredoo Hutchison plunged 4.92 percent, Indocement skidded 1.09 percent, Semen Indonesia tumbled 2.04 percent, United Tractors surged 4.81 percent, Energi Mega Persada jumped 2.27 percent, Astra Agro Lestari dropped 0.94 percent, Aneka Tambang shed 0.55 percent, Vale Indonesia rallied 2.68 percent, Timah tanked 2.22 percent, Bumi Resources plummeted 4.14 percent and Astra International and Indofood Suskes were unchanged.

The lead from Wall Street is brutal as the major averages opened higher on Friday but quickly nosedived into the red and finished with deep losses.

The Dow tumbled 403.87 points or 1.34 percent to finish at 29,634.83, while the NASDAQ plunged 327.81 points or 3.08 percent to close at 10,321.39 and the S&P 500 sank 86.84 points or 2.37 percent to end at 3,583.07.

For the week, the Dow rose 1.2 percent, the NASDAQ dropped 3.1 percent and the S&P lost 1.5 percent.

The sharp pullback on Wall Street extended the volatility on Thursday, when stocks recovered from an early sell-off to close sharply higher. But renewed selling pressure was generated by a report from the University of Michigan showing a rebound in inflation expectations in October.

Traders also reacted to earnings news from several big-name financial companies as JPMorgan Chase (JPM) and Wells Fargo (WFC) reported better than expected revenues, while Morgan Stanley (MS) missed estimates.

Crude oil prices plummeted on Friday, weighed down by concerns about the outlook for energy demand amid the rising possibility of a global recession. West Texas Intermediate Crude oil futures for November ended lower by $3.50 or 3.9 percent at $85.61 a barrel.

Closer to home, Indonesia will see September data for imports, exports and trade balance later today. Imports are expected to jump 31.48 percent on year after rising 32.81 percent in August. Exports are seen higher by an annual 27.91 percent, down from 30.15 percent in the previous month. The trade surplus is called at $4.84 billion, down from $5.76 billion a month earlier.