The Indonesia stock market managed to gain modestly despite global softness, showing resilience in the face of challenges. Over the course of three trading days, the Jakarta Composite Index experienced a two-day slide before moving higher again. While it currently sits just beneath the 6,900-point mark, there is an expectation of further decline in the market on Friday.
The Asian markets are anticipated to open on a slightly soft note, influenced by the downbeat performance of European and U.S. markets. Investor sentiments are cautious as they await key U.S. employment data scheduled to be released later in the day.
On Thursday, the JCI closed slightly higher, mainly driven by gains in cement companies and financial shares. The index gained 43.57 points or 0.64 percent to finish at 6,898.08.
Bank Mandiri saw a notable increase of 1.75 percent, while Bank Danamon Indonesia and Bank Negara Indonesia added 0.67 percent and 0.85 percent respectively. Other active companies included Bank Central Asia, Indocement, Semen Indonesia, United Tractors, Astra International, Energi Mega Persada, Vale Indonesia, Bumi Resources, and several others. Meanwhile, Aneka Tambang, Bank CIMB Niaga, Indosat Ooredoo Hutchison, Astra Agro Lestari, Indofood Suskes, Timah, and Bank Rakyat Indonesia remained unchanged.
On Wall Street, major averages opened lower, rallied midday but ultimately closed in negative territory. The Dow lost 66.63 points or 0.19 percent to end at 35,215.89. The NASDAQ dipped 13.73 points or 0.10 percent, closing at 13,858.71, while the S&P 500 fell 11.50 points or 0.25 percent to finish at 4,501.89.
The early weakness on Wall Street was influenced by ongoing concerns surrounding U.S. debt following Fitch Ratings’ unexpected downgrade of the country’s credit rating earlier in the week. Traders exhibited relatively subdued selling pressure as they awaited the highly anticipated monthly jobs report.
In terms of economic news, the Labor Department reported a modest increase in first-time claims for U.S. unemployment benefits, while the Institute for Supply Management noted a slight slowdown in the pace of growth in the U.S. service sector activity for July.
Crude oil prices experienced an upward trend after Saudi Arabia announced an extension of its production cut into the next month. West Texas Intermediate Crude oil futures for September rose by $2.06 or 2.6 percent to reach $81.66 per barrel.
While the global markets face softness, the Indonesia stock market has demonstrated its ability to navigate these challenges. Investors will be closely monitoring the impact of the U.S. employment data on market conditions, which could potentially influence future trading sessions.
