Higher Open Called For Indonesia Stock Market

(RTTNews) - Ahead of Friday's holiday for Labor Day, the Indonesia stock market had turned lower again, one day after ending the seven-day losing streak in which it had tumbled more than 550 points or 5.1 percent. The Jakarta Composite Index now rests just above the 6,900-point plateau although it may see renewed support on Monday.

The global forecast for the Asian markets is cautiously optimistic on strength from the technology stocks and easing crude oil prices. The European and U.S. markets were mixed to higher and the Asian markets are likely to open in similar fashion.

The JCI finished sharply lower on Thursday following losses from the financial, food and cement sectors, while the resource companies were mixed.

For the day, the index plummeted 144.42 points or 2.03 percent to finish at 6,956.80 after trading between 6,876.58 and 7,109.00.

Among the actives, Bank CIMB Niaga retreated 1.47 percent, while Bank Mandiri dropped 0.90 percent, Bank Danamon Indonesia fell 0.24 percent, Bank Negara Indonesia tumbled 2.11 percent, Bank Central Asia tanked 2.09 percent, Bank Rakyat Indonesia surrendered 2.61 percent, Indosat Ooredoo Hutchison added 0.50 percent, Semen Indonesia cratered 4.31 percent, Indofood Sukses Makmur declined 1.46 percent, United Tractors plunged 4.52 percent, Astra International skidded 1.24 percent, Energi Mega Persada slumped 1.16 percent, Astra Agro Lestari gained 0.62 percent, Aneka Tambang crashed 3.61 percent, Vale Indonesia rose 0.37 percent, Timah sank 1.38 percent, Bumi Resources surged 4.35 percent and Indocement was unchanged.

The lead from Wall Street is mostly positive as the major averages opened higher but bounced up and down all day, finally ending mixed.

The Dow dropped 152.83 points or 0.31 percent to finish at 49,499.27, while the NASDAQ rose 222.14 points or 0.89 percent to close at a record 25,114.44 and the S&P 500 added 21.11 points or 0.29 percent to end at 7,230.12, also a record.

For the week, the NASDAQ jumped 1.1 percent, the S&P 500 climbed 0.9 percent and the Dow increased 0.6 percent.

The early strength on Wall Street came amid a sharp increase by shares of Apple (AAPL), which saw better than expected Q2 results and forecast revenues for the current quarter above estimates.

In U.S. economic news, the Institute for Supply Management reported that manufacturing activity expanded for the fourth consecutive month in April.

Crude oil prices plunged on Friday on hopes for an end to hostilities even as the Strait of Hormuz remains closed, continuing to disrupt crude oil supply. West Texas Intermediate crude for June delivery was down $3.28 or 3.28 percent at $101.79 per barrel.

Closer to home, Indonesia will provide March trade data and April inflation numbers later today. In February, imports were up 10.85 percent and exports rose an annual 1.01 percent to a trade surplus of $1.28 billion. In March, overall inflation was up 0.41 percent on month and 3.48 percent on year, while core CPI rose an annual 2.52 percent.