The Indonesia stock market has finished lower in five straight sessions, tumbling more than 190 points or 3.2 percent along the way. The Jakarta Composite Index now rests just beneath the 6,040-point plateau although it’s finally got a positive lead on Friday.
The global forecast for the Asian markets suggests a higher open on a technical rebound, with bargain hunting expected. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The JCI finished modestly lower on Thursday as losses from the financial shares and cement companies were mitigated by support from the resource stocks.
For the day, the index fell 16.90 points or 0.28 percent to finish at 6,038.53 after trading between 5,997.69 and 6,050.60.
Among the actives, Bank Danamon Indonesia advanced 1.09 percent, while Bank Mandiri tumbled 1.92 percent, Bank Central Asia eased 0.17 percent, Bank Negara Indonesia lost 0.36 percent, Bank Rakyat Indonesia plunged 3.05 percent, Indosat climbed 1.12 percent, Indocement spiked 2.12 percent, Semen Indonesia retreated 1.14 percent, Bumi Resources sank 1.15 percent, Aneka Tambang surged 4.89 percent, Vale Indonesia skyrocketed 7.81 percent, Timah soared 4.44 percent and Indofood Suskes and United Tractors were unchanged.
The lead from Wall Street is positive as stocks shook off early volatility on Thursday to move mostly higher – offsetting the steep losses from the previous two sessions.
The Dow added 122.42 points or 0.47 percent to 26,201.04, while the NASDAQ rose 87.02 points or 1.12 percent to 7,872.27 and the S&P 500 gained 23.02 points or 0.80 percent to 2,910.63.
The strength that emerged on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels following recent weakness.
Confidence the Federal Reserve will continue to cut interest rates also contributed to the