FX.co ★ Indonesia Bourse May Remain Stuck In Neutral

The Indonesian stock market has experienced declines in two out of the three trading days, following the conclusion of a three-day winning streak during which it saw gains exceeding 80 points, equivalent to 1 percent. As a result, the Jakarta Composite Index is now positioned slightly above the 7,740 mark, with expectations for a marginal dip on Monday.

The outlook for Asian markets is currently subdued, with anticipated profit-taking set to follow last week's notable gains. European markets have ended lower, while U.S. markets presented a mixed yet mostly unchanged performance, suggesting a divided outcome for Asian markets.

On Friday, the JCI saw a significant drop, driven by losses in financial and resource sectors. The index plunged by 162.39 points or 2.05 percent, concluding the day at 7,743.00 after fluctuating between a low of 7,738.32 and a high of 7,904.51.

Key performers included Bank CIMB Niaga, which decreased by 0.50 percent, and Bank Mandiri, which fell by 1.35 percent. In contrast, Bank Danamon Indonesia gained 0.75 percent, and Indocement appreciated by 1.10 percent. Other notable movements included United Tractors' 1.13 percent rise and Astra Agro Lestari's 2.32 percent rally. On the downside, Bank Negara Indonesia dropped 1.29 percent, Bank Central Asia slipped 1.15 percent, and Jasa Marga declined by 1.69 percent. Indosat Ooredoo Hutchison remained unchanged.

Wall Street provided minimal directional cues as major indices opened lower on Friday, maintaining that trajectory for much of the session. However, the Dow edged up slightly by the close.

Specifically, the Dow increased by 38.16 points or 0.09 percent to close at a record 42,063.36, while the NASDAQ decreased by 65.68 points or 0.36 percent, ending at 17,948.32. The S&P 500 saw a minor decline of 11.09 points or 0.19 percent, settling at 5,702.55.

For the week, the Dow surged by 1.6 percent, the NASDAQ rose by 1.5 percent, and the S&P 500 climbed by 1.4 percent.

Early weakness on Wall Street was partly attributed to profit-taking, as investors capitalized on Thursday's significant rally spurred by the Federal Reserve's decision to reduce interest rates by half a percentage point. However, selling pressure diminished throughout the session as traders appeared hesitant to make substantial moves without a clear catalyst following the Fed’s rate cut.

In the oil market, futures settled slightly lower on Friday, largely due to profit-taking after a strong performance last week. West Texas Intermediate Crude oil futures for October saw a marginal decline of $0.03, closing at $71.92 per barrel.