Rebound Anticipated For Indonesia Stock Market

(RTTNews) - The Indonesia stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had jumped more than 310 points or 3.9 percent. The Jakarta Composite Index now rests just above the 8,270-point plateau and it may bounce higher again on Monday.

The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The JCI finished slightly lower on Friday following losses from the telecoms and mixed results from the financials and resource stocks.

For the day, the index eased 2.63 points or 0.03 percent to finish at the daily low of 8,271.72 after peaking at 8,351.06.

Among the actives, Bank Mandiri rallied 2.71 percent, while Bank Danamon Indonesia collected 0.42 percent, Bank Negara Indonesia spiked 3.07 percent, Bank Central Asia shed 0.60 percent, Bank Rakyat Indonesia improved 0.79 percent, Indosat Ooredoo Hutchison stumbled 3.05 percent, Indocement jumped 2.85 percent, Indofood Sukses Makmur skidded 1.02 percent, United Tractors lost 0.64 percent, Astra International soared 3.95 percent, Energi Mega Persada plummeted 6.15 percent, Astra Agro Lestari retreated 1.54 percent, Aneka Tambang tumbled 1.88 percent, Vale Indonesia fell 0.24 percent, Timah added 0.39 percent, Bumi Resources gained 0.75 percent and Bank CIMB Niaga and Semen Indonesia were unchanged.

The lead from Wall Street is strong as the major averages opened solidly higher on Friday and remained well in the green throughout the trading day and all hit fresh record closing highs.

The Dow jumped 472.52 points or 1.01 percent to finish at 47,207.12, while the NASDAQ rallied 263.07 points or 1.15 percent to end at 23,204.87 and the S&P 500 added 53.25 points or 0.79 percent to close at 6,791.69.

The rally on Wall Street followed the release of a closely watched report on consumer price inflation that increased confidence that the Federal Reserve will continue cutting interest rates in the coming months.

While most U.S. economic data has been postponed indefinitely due to the ongoing government shutdown, the Labor Department released a report showing consumer prices increased less than expected in September.

Buying interest was also generated in reaction to upbeat earnings news from big-name companies like Ford (F), Procter & Gamble (PG) and Intel (INTC).

Crude oil prices dipped Friday on profit taking following large gains a day earlier. West Texas Intermediate crude for December delivery slipped $0.17 or 0.3 percent to $61.62 per barrel; for the week, crude surged 7.8 percent.