FX.co ★ Indonesia Shares Likely To Head South Again On Friday

The Indonesian stock market broke its six-day losing streak on Thursday, after shedding over 230 points or 3 percent during that period. The Jakarta Composite Index (JCI) is currently situated just below the 7,575-point threshold, although renewed selling pressure is anticipated on Friday.

Globally, the outlook for Asian markets appears broadly negative, driven primarily by declining optimism regarding interest rate forecasts and pressure on technology stocks. Both European and U.S. markets closed significantly lower, setting the stage for Asian markets to potentially follow suit.

On Thursday, the JCI edged higher, buoyed by gains in telecommunications, while resource stocks saw losses, and financials and cement companies experienced mixed results. The index rose by 4.17 points or 0.06 percent, closing at 7,574.02, after moving between 7,558.68 and 7,617.36 throughout the day.

In the day’s trading, notable performers included Bank Mandiri, which fell by 0.74 percent, and Bank Negara Indonesia, which rose by 0.48 percent. Bank Central Asia slipped 0.97 percent, whereas Bank Rakyat Indonesia surged 1.91 percent. Meanwhile, Bank Maybank Indonesia climbed 0.88 percent, and Indosat Ooredoo Hutchison soared 7.76 percent. Indocement dropped 1.37 percent, Semen Indonesia increased by 1.02 percent, and Indofood Sukses Makmur advanced 1.67 percent. United Tractors surged 3.88 percent, while Astra International fell 1.92 percent. Energi Mega Persada decreased by 0.70 percent, Astra Agro Lestari strengthened 1.88 percent, and Aneka Tambang dropped 1.84 percent. Vale Indonesia fell 1.29 percent, Timah retreated 1.88 percent, Bumi Resources declined 0.71 percent, and Bank CIMB Niaga, Bank Danamon Indonesia, and Jasa Marga remained unchanged.

Wall Street painted a gloomy picture, as major averages opened firmly lower and remained in the red throughout the session. The Dow Jones Industrials plummeted by 378.08 points or 0.90 percent to close at 41,763.46. The NASDAQ fell steeply by 512.78 points or 2.76 percent, finishing at 18,095.15, while the S&P 500 dropped 108.22 points or 1.86 percent to close at 5,705.45.

The downturn on Wall Street was primarily attributed to a negative reaction to earnings reports from major tech companies, Microsoft (MSFT) and Meta Platforms (META). Investors also reacted to closely monitored consumer price inflation data, which, while largely meeting economists' estimates, saw core CPI holding steady instead of falling as anticipated. This added to worries that the Federal Reserve might slow down its interest rate cuts more than hoped.

In the commodities market, oil prices rose on Thursday amid expectations for increased U.S. demand and potential delays in OPEC's planned production increases slated for December. West Texas Intermediate Crude oil futures for December surged by $0.65, or 0.95 percent, settling at $69.26 per barrel.

Domestically, Indonesia is set to release October consumer price data later today. In September, overall inflation had decreased by 0.12 percent from the previous month but increased by 1.84 percent year-over-year, with core CPI rising annually by 2.09 percent.