Indonesia’s stock market is heading into Monday with little momentum, following another weak session that left the Jakarta Composite Index just above the 6,440-point level.
The JCI slipped 21.27 points or 0.33 percent on Friday, closing at 6,441.16 after trading within a range of 6,419.50 to 6,521.02 during the session.
Friday’s decline came just one day after the index managed to halt a six-session losing streak that had wiped out more than 250 points, or roughly 3.8 percent of its value.
Losses in the finance, retail, and infrastructure sectors weighed on the index, though resource companies provided partial support and helped limit the overall damage.
The global forecast for Asian markets heading into Monday is mixed to lower, driven by concerns over crude oil prices and the broader outlook for interest rates.
European markets closed lower on Friday, while U.S. bourses ended the session mixed, and Asian markets are expected to reflect a similar split performance.
Wall Street offered little directional clarity, with the Dow falling 95.36 points or 0.18 percent to finish at 51,682.64, while the NASDAQ climbed 104.24 points or 0.39 percent to end at 26,522.54.
The S&P 500 edged up 12.74 points or 0.17 percent to close at 7,650.50, capping a week where the NASDAQ added 0.7 percent, the S&P 500 eased 0.1 percent, and the Dow slumped 1.7 percent.
Choppy trading throughout Friday’s U.S. session was driven by a mixed performance in crude oil prices and treasury yields, both of which have been key market forces in recent sessions.
Oil prices moved lower amid optimism about a potential de-escalation of the conflict in the Middle East, but treasury yields jumped due to ongoing worries about the outlook for interest rates.
West Texas Intermediate crude for October delivery fell $1.74 or 1.71 percent to settle at $100.17 per barrel, as investors anticipated upcoming meetings between the U.S. and Gulf leaders aimed at reducing regional tensions.
On the U.S. economic front, the Fed reported that industrial production unexpectedly came in flat in August, with a jump in utilities output offset by a decrease in manufacturing output.
With no strong catalyst on the horizon, Indonesian traders are likely to take a cautious stance as Monday’s session opens against this uncertain global backdrop.
