RTTNews - The Indonesian stock market has finished higher now in back-to-back sessions, collecting nearly 100 points or 4.8 percent along the way. The Jakarta Composite Index finished above the 2,320-point plateau, and now analysts are predicting that the market will hold serve in that vicinity when it kicks off trade on Monday.
The global forecast for the Asian markets offers little in the way of guidance as commodities and financials are tipped to continue to rise, but weakness among the technology shares could erase those gains. The European and U.S. markets finished in mixed fashion, although not too far from the unchanged line in either direction - and the Asian bourses are tipped to follow that lead.
The JCI finished sharply higher on Friday, thanks to gains among the commodities and financial stocks.
For the day, the index was up 25.01 points or 1.09 percent to finish at 2,323.24 after trading between 2,298.65 and 2,332.76. Volume was 13.9 billion shares worth 9.97 trillion rupiah. There were 110 gainers and 105 decliners, with 67 stocks finishing unchanged.
Among the gainers, Bumi Resources surged 15.5 percent, while Bakrie & Brothers gained 10.53 percent, Energi Mega Persada added 5.6 percent, Dharma Henwa gained 4.8 percent, Bank Mandiri rose 6.4 percent, Bank Danamon gained 2.1 percent, Batubara Bukit Asam added 1.9 percent and Astra International added 4.3 percent.
Bucking the trend, Bank Rakyat Indonesia fell 2 percent and Telekomunikasi Indonesia tumbled 4.8 percent.
The lead from Wall Street is inconclusive as stocks finished Friday's session on a mixed note after a shaky start prompted by gross domestic product figures for the second quarter. The major averages closed on opposite sides of the unchanged mark amid another session that was marred by low volume, typical of the summer.
Early trading was swayed by an advance report on second quarter gross domestic product from the Commerce Department. While the report revealed that the U.S. economy continued to shrink by a slower than expected margin, trader concern grew as consumer consumption came in far lower than expected. According to the data, gross domestic product fell at a pace of 1 percent for the second quarter after economists had expected GDP to fall at a rate of 1.5 percent. Some pessimism was generated by the personal consumption figure in the report, which showed a decrease of 1.2 percent, significantly more than economists had been expecting. This followed a 0.6 percent increase in the first quarter.
Later in the morning, traders largely shrugged off the Institute of Supply Management-Chicago's manufacturing index for July, which came in slightly higher than expected at 43.4. Economists expected the business barometer index to come in at 43 after rising by 5 points to 39.9 in June.
With earnings season drawing to a close, Disney (DIS) and Monster Worldwide (MWW) reported earnings that beat forecasts, while oil giant Chevron (CVX) disappointed. The season's earnings results largely beat expectations, but for the most part due to cost cutting measures rather than revenue growth in a market constricted by the recession.
After hovering in positive territory throughout much of the trading session, the major averages ended the day on opposite sides of the unchanged line. The tech heavy NASDAQ fell by 5.80 points or 0.3 percent to 1,978.50, while the Dow closed up by 17.15 points or 0.2 percent at 9,171.61 and the S&P 500 rose 0.73 points or 0.1 percent to 987.48. Despite the mixed performance for the session, the major averages all closed higher for the week due largely to Thursday's rally. The Dow rose 0.9 percent for the week, while the NASDAQ and the S&P 500 posted weekly gains of 0.6 percent and 0.8 percent, respectively.
In economic news, Indonesia will on Monday provide July data for imports, exports and trade balance. Imports are expected to contract 31.9 percent on year after the 32.7 percent decline in June. Exports are predicted to fall 24.3 percent on year following the 28.3 percent contraction in the previous month. The trade balance is forecast to show a surplus of $1.7 billion, up from the $1.14 billion surplus a month earlier.
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