Indonesia Shares Likely To Open Under Pressure

(RTTNews) - The Indonesia stock market on Friday ended the three-day winning streak in which it had gathered more than 65 points or 0.9 percent. The Jakarta Composite Index now rests just above the 7,025-point plateau and it's expected to open in the red again on Monday.

The global forecast for the Asian markets is broadly negative after better than expected U.S. employment data raised grace concerns over the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are also tipped to open in similar fashion.

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

For the day, the index sank 49.84 points or 0.70 percent to finish at 7,026.78.

Among the actives, Bank Danamon Indonesia surged 4.25 percent, while Bank Negara Indonesia declined 1.40 percent, Bank Central Asia tanked 2.67 percent, Bank Mandiri climbed 1.07 percent, Bank Rakyat Indonesia slumped 1.55 percent, Indosat Ooredoo Hutchison plunged 3.53 percent, Semen Indonesia retreated 1.37 percent, Indofood Suskes fell 0.41 percent, United Tractors added 0.46 percent, Astra International tumbled 1.89 percent, Energi Mega Persada soared 4.41 percent, Astra Agro Lestari surrendered 2.06 percent, Aneka Tambang rose 0.26 percent, Vale Indonesia climbed 1.12 percent, Timah strengthened 1.45 percent, Bumi Resources skyrocketed 14.11 percent and Bank CIMB Niaga and Indocement were unchanged.

The lead from Wall Street is brutal as the major averages opened deep in the red and only worsened as the day progressed.

The Down plunged 630.11 points or 2.11 percent to finish at 29,296.79, while the NASDAQ sank 289.14 points or 3.80 percent to end at 10,652.40 and the S&P 500 slumped 104.86 points or 2.80 percent to close at 3,639.66. For the week, the Dow surged 2.0 percent, the S&P 500 jumped 1.5 percent and the NASDAQ climbed 0.7 percent.

The sell-off on Wall Street came following the release of the Labor Department's closely watched monthly jobs report, which failed to ease concerns about the outlook for interest rates by coming in stronger than economists had anticipated.

The unemployment rate matched its lowest level since just before Covid-19 lockdowns began to take effect in February 2020, which was also matched in July. Unemployment has not been lower in over 50 years.

Treasury yields advanced following the release of the report, with the yield on the benchmark ten-year note moving higher for the third straight session.

Crude oil prices rose sharply Friday, continuing to find support from the OPEC decision last week to cut output by 2 million barrels per day. West Texas Intermediate Crude oil futures for November ended higher by $4.19 or 4.7 percent at $92.64 a barrel, settling at a five-week high.