Losses May Accelerate For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Friday snapped the two-day winning streak in which it had advanced almost 100 points or 1.3 percent. The Jakarta Composite Index now sits just above the 7,170-point plateau and it's expected to open in the red again on Monday.

The global forecast for the Asian markets is mixed to lower on concerns for an economic slowdown and an increase in interest rates. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets figure to split the difference.

The JCI finished slightly lower on Friday following weakness from the financials and cement companies, while the resource stocks were mixed.

For the day, the index dipped 14.13 points or 0.20 percent to finish at 7,172.43.

Among the actives, Bank Danamon Indonesia stumbled 1.54 percent, while Bank CIMB Niaga dropped 0.89 percent, Bank Negara Indonesia tumbled 1.73 percent, Bank Central Asia retreated 1.25 percent, Bank Mandiri skidded 1.16 percent, Bank Rakyat Indonesia lost 0.69 percent, Indosat Ooredoo Hutchison rallied 2.73 percent, Indocement slumped 1.08 percent, Semen Indonesia plunged 3.66 percent, United Tractors weakened 1.09 percent, Energi Mega Persada plummeted 4.96 percent, Astra Agro Lestari rose 0.27 percent, Aneka Tambang added 0.49 percent, Vale Indonesia jumped 1.96 percent, Timah spiked 2.71 percent, Bumi Resources tanked 3.50 percent and Astra International and Indofood Suskes were unchanged.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Friday and remained deep in the red throughout the session.

The Dow tumbled 292.26 points or 0.86 percent to finish at 33.706.74, while the NASDAQ plummeted 260.08 points or 2.01 percent to close at 12,705.21 and the S&P 500 slumped 55.26 points or 1.29 percent to end at 4,228.48. For the week, the NASDAQ dove 2.6 percent, the S&P sank 1.2 percent and the Dow dipped 0.2 percent.

The weakness on Wall Street came as traders looked to cash in on recent strength in the markets, which lifted the major averages well off their June lows to their best levels in almost four months.

Traders may also have been moving money out of stocks ahead of this week's economic symposium in Jackson Hole, Wyoming. Remarks by Federal Reserve officials at the annual symposium are likely to be in focus, as traders look for additional clues about the pace of future interest rate hikes.

Oil futures settled modestly higher on Friday but posted a weekly loss due to concerns about the outlook for energy demand amid fears of a possible recession in Europe. West Texas Intermediate Crude oil futures for September rose $0.27 or 0.3 percent at $90.77 a barrel.