The Indonesia stock market on Friday wrote a finish to the three-day slide in which it had surrendered more than 40 points or 0.7 percent. The Jakarta Composite Index now rests just beneath the 5,930-point plateau and it's expected to open higher again on Monday.
The global forecast for the Asian markets is positive thanks to optimism over U.S. tax reform and a bump in crude oil prices. The European and U.S. markets were up on Friday and the Asian markets figure to follow that lead.
The JCI finished modestly higher on Friday following gains from the financial shares and the resource stocks.
For the day, the index gained 19.02 points or 0.32 percent to finish at 5,929.55 after trading between 5,918.53 and 5,959.58.
Among the actives, Bank Danamon Indonesia surged 3.35 percent, while Bank Mandiri climbed 1.79 percent, Bank MNC Internasional dropped 1.92 percent, XL Axiata gained 0.89 percent, Bumi Resources soared 3.92 percent, Vale Indonesia spiked 4.18 percent, Jasa Marga shed 0.82 percent, Voksel Electric lost 0.64 percent, Tiga Pilar Sejahtera Food added 0.51 percent, Indofood skidded 2.24 percent and Bank Pan Indonesia and Lotte Chemical were unchanged.
The lead from Wall Street is upbeat as stocks moved higher on Friday, allowing the major averages to hit fresh record closing highs.
The Dow advanced 165.59 points or 0.71 percent to 23,328.63, while the NASDAQ rose 23.99 points or 0.36 percent to 6,629.04 and the S&P was up 13.11 points or 0.51 percent to 2,575.21. For the week, the Dow added 2 percent, while the NASDAQ gained 0.4 percent and the S&P was up 0.9 percent.
The strength was partly in reaction to news that Senate Republicans approved a budget resolution to advance their tax reform plan. The plan includes a reduction in the corporate tax rate to 20 percent from 35 percent and a consolidation in personal income tax brackets to three from seven.
In earnings news, General Electric (GE) reported Q3 earnings well below estimates and slashed its full-year earnings forecast. Procter & Gamble (PG) saw solid earnings but on sales that missed estimates. PayPal (PYPL) reported Q3 results that beat estimates on both the top and bottom lines.
Crude oil futures rose Friday after U.S. rig count fell for a third consecutive week. December WTI oil settled at $51.84/bbl, up 33 cents or 0.6 percent. November WTI oil was up 18 cents or 0.4 percent to $51.47/bbl on expiration day.
For comments and feedback contact: editorial@rttnews.com
Market Analysis