Indonesia Shares Poised Extend Thursday's Gains

(RTTNews) - Ahead of Friday's holiday for the Islamic New Year, the Indonesia stock market had moved higher in two of three trading days since the end of the four-day losing streak in which it had dropped more than 370 points or 5 percent. The Jakarta Composite Index now sits just beneath the 6,900-point plateau and it may see additional support on Monday.

The global forecast for the Asian markets is positive on optimism over a possible resolution to tariff talks. The European and U.S. markets finished higher and the Asian bourses are expected to follow that lead.

The JCI finished modestly higher on Thursday following gains from the telecoms, financial shares and resource stocks, while the cement companies were mixed.

For the day, the index advanced 65.26 points or 0.96 percent to finish at 6,897.40 after trading between 6,817.41 and 6,869.02.

Among the actives, Bank CIMB Niaga collected 0.30 percent, while Bank Mandiri rallied 2.97 percent, Bank Danamon Indonesia shed 0.41 percent, Bank Negara Indonesia rose 0.24 percent, Bank Central Asia added 0.58 percent, Bank Rakyat Indonesia jumped 1.86 percent, Indosat Ooredoo Hutchison accelerated 1.95 percent, Indocement advanced 0.96 percent, Semen Indonesia sank 0.77 percent, Astra International lost 0.45 percent, Energi Mega Persada strengthened 1.83 percent, Aneka Tambang gained 0.34 percent, Vale Indonesia surged 4.53 percent, Timah spiked 2.55 percent, Bumi Resources improved 0.89 percent and Indofood Sukses Makmur, United Tractors and Astra Agro Lestari were unchanged.

The lead from Wall Street is upbeat as the major averages spent most of Friday in the green, shaking off a late slump to finish solidly in positive territory.

The Dow jumped 432.47 points or 1.00 percent to finish at 43,819.27, while the NASDAQ gained 105.56 points or 0.52 percent to end at 20,273.46 and the S&P 500 added 32.05 points or 0.52 percent to end at 6,173.07. For the week, the NASDAQ surged 4.3 percent, the Dow jumped 3.8 percent and the S&P 500 shot up 3.4 percent.

Optimism about new trade deals contributed to the early rally on Wall Street after President Donald Trump indicated the U.S. had signed an agreement with China.

However, stocks pulled back sharply in afternoon trading after Trump said he is ending trade talks with Canada due to the country imposing a digital services tax on U.S. technology companies.

In economic news, the Commerce Department released a closely watched report that included the Federal Reserve's preferred readings on consumer price inflation - which said overall inflation rose in line with expectations.

Crude oil posted gains on Friday in the wake of the U.S. confirming readiness to sign trade deals with China and multiple other trading partners, plus indications of strong summer demand. West Texas Intermediate crude for August delivery rose $0.28 to settle at $65.52 per barrel.