FX.co ★ Indonesia Shares May Open Under Pressure Again On Friday

The Indonesian stock market concluded its two-day surge on Thursday after accumulating over 100 points or 1.4 percent. The Jakarta Composite Index, while just over the 7,155-point mark, is anticipated to have another subdued opening on Friday.

Current international forecasts indicate a cautious outlook for the Asian markets due to uncertainties surrounding interest rate trajectories. The European markets had mixed results, while U.S. markets declined, setting an expected precedent for Asian counterparts.

On Thursday, the Jakarta Composite Index (JCI) ended slightly down due to decreased values in financial stock, resource stock, and cement companies. The index lost 19.24 points or 0.27 percent to close at 7,155.29 after trading in the range of 7,132.10 to 7,177.06 points.

Among the most active on the market, notable moves included Bank CIMB Niaga (down by 0.80 percent), Bank Mandiri (retreating 1.42 percent), and Bank Danamon Indonesia, which slid by 1.08 percent. Meanwhile, companies such as Indosat Ooredoo Hutchison and Astra International gained by 0.67 and 0.81 percent respectively. However, these gains were offset by severe losses for companies like Timah, which fell by a massive 14.72 percent.

U.S. stocks negatively impact international dynamics as major averages consistently traded low on Thursday. The Dow experienced a 375.12 point drop (or a 0.98 percent decrease), ending at 38,085.80 points, and both NASDAQ and the S&P 500 also fell.

Disappointing earnings news from Meta Platforms (META) and IBM Corp. (IBM) catalyzed the early sell-off on Wall Street. The U.S. Commerce Department also contributed unsettling news, reporting slower than anticipated growth in the U.S. economy for the first quarter of 2024 and a higher than predicted climb in the personal consumption price index.

This economic data dismayed investors as it hurt the probability of an imminent interest rate cut by the Federal Reserve. Yet despite a slower than expected U.S. GDP growth in the first quarter, crude oil futures managed to recover from recent losses to end higher on Thursday. The West Texas Intermediate Crude oil futures for June rose by $0.76 or about 0.92%, ending at $83.57 a barrel.