The Indonesian stock market has experienced a downturn over the past three sessions, with a cumulative loss of nearly 280 points or 3.9 percent. Consequently, the Jakarta Composite Index now hovers just above the 6,970 mark, although it is expected to find support as the market opens on Monday.
The global outlook for Asian markets is cautiously optimistic, driven by a positive sentiment regarding interest rates. Following mostly higher performances in both European and U.S. markets, Asian bourses are anticipated to follow suit.
On Friday, the JCI saw a modest decline, influenced by losses in the food sector and varied performances in financial and resource stocks. The index fell by 63.40 points, or 0.90 percent, to conclude at 6,970.74, within a trading range of 6,959.23 to 7,102.22.
Key performances in active stocks included:
- Bank CIMB Niaga fell by 2.86 percent
- Bank Mandiri inched up by 0.43 percent
- Bank Negara Indonesia dropped by 2.00 percent
- Bank Central Asia surged by 2.78 percent
- Bank Rakyat Indonesia dipped by 0.91 percent
- Indosat Ooredoo Hutchison rose by 0.25 percent
- Semen Indonesia plummeted by 5.42 percent
- Indofood Sukses Makmur declined by 2.89 percent
- United Tractors dropped by 0.90 percent
- Astra International decreased by 0.69 percent
- Energi Mega Persada plunged by 5.49 percent
- Astra Agro Lestari advanced by 0.86 percent
- Aneka Tambang retreated by 1.68 percent
- Vale Indonesia slipped by 0.20 percent
- Timah declined by 1.65 percent
- Bumi Resources surged by 3.41 percent
- Bank Danamon Indonesia and Indocement remained unchanged
The lead from Wall Street was relatively positive. Major indices opened higher on Friday, experienced a midday slump, but rallied to close with mixed results. The Dow surged by 574.82 points, or 1.51 percent, to finish at 38,686.32. The NASDAQ saw a marginal dip of 2.08 points, or 0.01 percent, closing at 16,735.02, while the S&P 500 gained 42.03 points, or 0.80 percent, ending at 5,277.51.
For the week, the S&P 500 declined by 0.5 percent, and both the Dow and NASDAQ fell by 1.0 percent and 1.1 percent, respectively. Nonetheless, all major averages registered strong gains for May.
The buoyed closing on Wall Street came in the wake of Commerce Department data that indicated U.S. consumer prices increased as expected in April. Core consumer prices rose slightly less than anticipated. These inflation readings, which are closely monitored by the Federal Reserve, fostered optimism for a potential rate cut in the upcoming months.
Oil prices declined on Friday, marking the third consecutive day of losses amid concerns over demand outlook. However, optimism surrounding the extension of OPEC production cuts tempered the downside. West Texas Intermediate crude oil futures for July fell by $0.92 to $76.99 per barrel.
Closer to home, Indonesia is set to release its consumer price index (CPI) figures for May later today. In April, overall inflation increased by 0.25 percent month-on-month and 3.00 percent year-on-year, while core CPI rose by 1.82 percent annually.
