Renewed Selling Pressure Predicted For Indonesia Stock Market

(RTTNews) - The Indonesia stock market on Friday wrote a finish to the two-day slide in which it had lost more than 90 points or 1.3 percent. The Jakarta Composite Index now sits just beneath the 6,850-point plateau although it's expected to head south again on Monday.

The global forecast for the Asian markets is broadly negative on rising bond yields and their effect on the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The JCI finished barely higher on Friday following gains from the financials, weakness from the cement companies and a mixed picture from the resource stocks.

For the day, the index perked 2.74 points or 0.04 percent to finish at 6,849.17 after trading between 6,803.19 and 6,869.47.

Among the actives, Bank CIMB Niaga rallied 1.21 percent, while Bank Mandiri collected 0.44 percent, Bank Danamon Indonesia fell 0.37 percent, Bank Negara Indonesia gained 0.61 percent, Bank Central Asia spiked 2.57 percent, Bank Rakyat Indonesia climbed 1.00 percent, Indocement lost 0.51 percent, Semen Indonesia slumped 1.16 percent, Indofood Suskes skidded 1.11 percent, United Tractors sank 0.77 percent, Astra International shed 0.44 percent, Energi Mega Persada advanced 0.81 percent, Astra Agro Lestari slid 0.35 percent, Aneka Tambang added 0.55 percent, Vale Indonesia dipped 0.43 percent, Timah plunged 4.00 percent, Bumi Resources dropped 0.82 percent and Indosat Ooredoo Hutchison was unchanged.

The lead from Wall Street is weak as the major averages opened lower and spent the entire day firmly in the red, ending at session lows.

The Dow dropped 286.89 points or 0.86 percent to finish at 33,127.28, while the NASDAQ slumped 202.37 points or 1.53 percent to close at 12,983.81 and the S&P 500 sank 53.84 points or 1.26 percent to end at 4,224.16.

For the week, the NASDAQ dropped 3.2 percent, the S&P 500 dove 2.4 percent and the Dow tumbled 1.6 percent.

The continued weakness on Wall Street came amid ongoing concerns about the recent surge in treasury yields to 16-year highs. Overnight, the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

Fears the Israel-Hamas war may escalate into a broader regional crisis also contributed to the negative sentiment on Wall Street.

Crude oil prices couldn't hold on to early gains, slumping on demand concerns amid fears the Israel-Hamas war may escalate into a broader regional crisis. West Texas Intermediate for November delivery, which expired Friday, fell $0.62 or 0.7 percent at $88.75 a barrel. The more active December futures slipped $0.29 or 0.3 percent to $88.08 a barrel.