Indonesia Stock Market Tipped To Reclaim 6,700-Point Level

(RTTNews) - The Indonesia stock market has tracked lower in back-to-back sessions, sinking almost 60 points or 0.8 percent along the way. The Jakarta Composite Index now rests just above the 6,685-point plateau although it's expected to stop the bleeding on Monday.

The global forecast for the Asian markets is upbeat thanks to an apparent resolution to the U.S. debt ceiling crisis forged over the weekend. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

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

For the day, the index slipped 17.23 points or 0.26 percent to finish at 6,687.00.

Among the actives, Bank CIMB Niaga spiked 2.84 percent, while Bank Mandiri dropped 0.97 percent, Bank Danamon Indonesia declined 1.08 percent, Bank Negara Indonesia lost 0.56 percent, Bank Central Asia climbed 1.10 percent, Bank Rakyat Indonesia rallied 2.28 percent, Indosat Ooredoo Hutchison advanced 0.96 percent, Indocement dipped 0.25 percent, Indofood Suskes jumped 1.41 percent, United Tractors tumbled 1.81 percent, Energi Mega Persada sank 0.95 percent, Astra Agro Lestari stumbled 1.34 percent, Aneka Tambang retreated 1.29 percent, Vale Indonesia added 0.38 percent, Bumi Resources plunged 2.75 percent and Astra International, Semen Indonesia and Timah were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Friday and remained solidly in the green throughout the session.

The Dow surged 328.64 points or 1.00 percent to finish at 33,093.34, while the NASDAQ spiked 277.59 points or 2.19 percent to end at 12,975.69 and the S&P 500 jumped 54.17 points or 1.30 percent to close at 4,205.45. For the week, the Dow slumped 1.0 percent, the NASDAQ rallied 2.5 percent and the S&P rose 0.3 percent.

Stocks benefitted from renewed optimism about raising the U.S. debt ceiling amid reports lawmakers are closing in on an agreement.

Those hopes came to fruition over the weekend when President Joe Biden and House Speaker Kevin McCarthy, R-Calif., reached an agreement in principle. It will raise the debt ceiling for two years and keep non-defense spending roughly flat for fiscal 2024.

Optimism about a debt ceiling deal overshadowed a Commerce Department report showing a reacceleration in the annual rate of consumer price growth in the month of April.

Crude oil prices climbed higher on Friday after Russia played down the prospect of additional output cuts by OPEC. West Texas Intermediate crude oil futures for July ended higher by $0.84 or 1.2 percent at $72.67 a barrel. WTI crude futures gained about 1.6 percent last week.