Indonesia Stock Market May Take Further Damage On Monday

(RTTNews) – The Indonesia stock market on Friday wrote a finish to the five-day winning streak in which it had risen more than 140 points or 2.7 percent. The Jakarta Composite Index now rests just above the 5,570-point plateau and the losses could accelerate on Monday.

The global forecast for the Asian markets is uninspired thanks to a continued surge in Covid-19 cases worldwide. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The JCI finished modestly lower on Friday following losses from the financial shares and the resource stocks.

For the day, the index lost 22.40 points or 0.40 percent to finish at 5,571.66 after trading between 5,563.65 and 5,628.44.

Among the actives, Bank Danamon Indonesia sank 0.72 percent, while Bank Mandiri shed 0.40 percent, Bank CIMB Niaga lost 0.60 percent, Bank Negara Indonesia declined 1.30 percent, Indosat added 0.46 percent, Indocement rallied 2.13 percent, Semen Indonesia jumped 1.79 percent, Indofood Suskes fell 0.69 percent, Astra Agro Lestari rose 0.23 percent, Aneka Tambang retreated 2.02 percent, Vale Indonesia tanked 2.77 percent, Timah tumbled 2.21 percent and Bumi Resources was unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday and largely remained in the red, finishing firmly in negative territory.

The Dow shed 219.75 points or 0.75 percent to finish at 29,263.48, while the NASDAQ sank 49.74 points or 0.42 percent to end at 11,854.976 and the S&P 500 fell 24.33 points or 0.68 percent to close at 3,557.54. For the week, the Dow fell 0.7 percent, the NASDAQ rose 0.2 percent and the S&P fell 0.8 percent.

The weakness on Wall Street reflected concerns about the near-term economic outlook amid a continued spike in new coronavirus cases in the U.S. Data showed nearly 188,000 new coronavirus cases on Thursday, while the daily death toll topped 2,000 for the first time.

The continued surge in new cases, hospitalizations and deaths in the U.S. has raised concerns new restrictions and lockdowns will dampen the economy recovery. While there continues to be upbeat news on the vaccine front, traders seem worried about an economic downturn leading up to the widespread distribution of a vaccine.

Adding to the economic uncertainty, Treasury Secretary Steven Mnuchin announced a decision to allow five of the Federal Reserve’s nine emergency lending programs to expire at the end of the year.

Crude oil prices moved higher on Friday, lifted by optimism about a likely pick-up in energy demand once the Covid-19 vaccines get the nod from drug regulators. West Texas Intermediate Crude oil futures for December settled at $42.15 a barrel, gaining $0.41 or 1 percent on the expiration day. New front-month contract January WTI futures were up by $0.52 or 1.2 percent at $42.42 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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