Losses could accelerate for Indonesian stock market

The Indonesian stock market broke its two-day winning streak on Friday in which it was up nearly 100 points, or 1.3 percent. The Jakarta Composite Index is now just above the 7,170-point plateau and is expected to open again in the red on Monday.

The global forecast for the Asian markets is mixed to ease on concerns about an economic slowdown and a rise in interest rates. The European markets were mixed and the US markets were sharply lower and the Asian markets share the difference.

The JCI ended slightly lower on Friday following weakness in financial and cement companies, while commodity stocks were mixed.

For the day, the index fell 14.13 points, or 0.20 percent, to end at 7,172.43.

Among the active, Bank Danamon Indonesia stumbled 1.54 percent, while Bank CIMB Niaga fell 0.89 percent, Bank Negara Indonesia plunged 1.73 percent, Bank Central Asia pulled 1.25 percent, Bank Mandiri slipped 1.16 percent, Bank Rakyat Indonesia lost 0.69 percent, Indosat Ooredoo Hutchison recovered 2.73 percent, Indocement fell 1.08 percent, Sperm Indonesia plunged 3.66 percent, United Tractors weakened 1.09 percent, Energi Mega Persada plunged 4.96 percent, Astra Agro Lestari rose 0.27 percent, Aneka Tambang added 0.49 percent, Vale Indonesia jumped 1.96 percent, Timah peaked 2.71 percent, Bumi Resources tanked 3.50 percent and Astra International and Indofood Suskes remained unchanged.

Wall Street’s lead is generally negative as the big averages opened sharply lower on Friday and remained deep in the red throughout the session.

The Dow fell 292.26 points or 0.86 percent to end at 33,706.74, while the NASDAQ plunged 260.08 points or 2.01 percent to close at 12,705.21 and the S&P 500 fell 55.26 points. or 1.29 percent to end at 4,228.48. For the week, the NASDAQ plunged 2.6 percent, the S&P fell 1.2 percent and the Dow fell 0.2 percent.

The weakness on Wall Street came as traders tried to take advantage of recent strength in the markets, which lifted key averages well from their June lows to their best levels in nearly four months.

Traders may also have taken money out of stocks ahead of this week’s economic symposium in Jackson Hole, Wyoming. Comments by Federal Reserve officials at the annual symposium are likely to draw attention as traders look for additional clues about the pace of future rate hikes.

Oil futures were slightly higher on Friday, but posted a weekly loss on concerns about the outlook for energy demand amid fears of a possible recession in Europe. West Texas Intermediate crude futures for September were up $0.27 or 0.3 percent to $90.77 a barrel.

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