Rally May Continue For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has climbed higher in two straight sessions, gathering almost 60 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 7,040-point plateau and it's tipped to open higher again on Monday.

The global forecast for the oversold Asian markets is broadly positive, with the oil, technology and financial sectors expected to lead the way higher. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Friday following gains from the cement companies and mixed performances from the financials and resource stocks.

For the day, the index added 44.67 points or 0.64 percent to finish at 7,042.94.

Among the actives, Bank Danamon Indonesia fell 0.41 percent, while Bank Central Asia shed 0.66 percent, Bank Mandiri jumped 1.84 percent, Bank Rakyat Indonesia collected 0.70 percent, Indocement spiked 2.89 percent, Semen Indonesia soared 4.45 percent, Indofood Suskes sank 0.70 percent, Astra International tanked 2.91 percent, Energi Mega Persada rallied 2.44 percent, Bakrie Sumatera Plantations plunged 4.15 percent, Astra Agro Lestari gained 0.77 percent, Aneka Tambang rose 0.25 percent, Vale Indonesia retreated 1.56 percent, Timah tumbled 1.66 percent, Bumi Resources strengthened 1.54 percent and Indosat, Bank CIMB Niaga, United Tractors and Bank Negara Indonesia were unchanged.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Friday and remained that way throughout the trading day.

The Dow surged 823.28 points or 2.68 percent to finish at 31,500.68, while the NASDAQ rallied 375.42 points or 3.34 percent to end at 11,607.62 and the S&P 500 jumped 116.01 points or 3.06 percent to close at 3,911.74.

For the holiday-shortened week, the NASDAQ soared by 7.5 percent, while the S&P 500 and the Dow spiked by 6.4 percent and 5.4 percent, respectively.

Traders continue to express concerns about inflation, interest rates and a potential recession but may feel to sell-off earlier this month was overdone.

On the U.S. economic front, the Commerce Department unexpectedly reported a significant rebound in new home sales in May. Also, the University of Michigan said consumer sentiment in the U.S. tumbled more than expected in June.

Crude oil prices rose sharply on Friday on optimism for continued high demand for energy and tight supply. West Texas Intermediate Crude oil futures for August ended higher by $3.35 or 3.2 percent at $107.62 a barrel. WTI futures shed 1.8 percent in the week.

Closer to home, Indonesia will see May numbers for M2 money supply later today; in April, M2 was up 13.6 percent on year.