The Indonesia stock market on Friday snapped the three-day slide in which it had surrendered almost 100 points or 1.5 percent. The Jakarta Composite Index now rests just shy of the 6,620-point plateau and it’s expected to open higher again on Monday.
The global forecast for the Asian markets is broadly positive thanks to a decline in treasury yields and a spike in crude oil prices. The European and U.S. markets were up and the Asian markets are expected to follow that lead.
The JCI finished modestly higher on Friday as gains from the food companies were capped by weakness from the financials and resource stocks.
For the day, the index added 26.74 points or 0.41 percent to finish at 6,619.80 after trading between 6,608.53 and 6,659.26.
Among the actives, Tiga Pilar Sejahtera Food skyrocketed 22.02 percent, while Jasa Marga skidded 1.81 percent, Lotte Chemical dropped 1.49 percent, Bank Pan Indonesia tumbled 1.48 percent, XL Axiata jumped 1.37 percent, Voksel Electric added 0.82 percent, Bank Mandiri shed 0.87 percent, Bumi Resources retreated 1.82 percent, Vale Indonesia plummeted 2.33 percent, Indofood lost 0.97 percent and Bank MNC Internasional and Bank Danamon Indonesia were unchanged.
The lead from Wall Street is firm as stocks opened higher on Friday and remained that way after ending the previous session on opposite sides of the unchanged line.
The Dow jumped 347.51 points or 1.39 percent to 25,309.99, the NASDAQ soared 127.31 points or 1.77 percent to 7,337.39 and the S&P 500 added 43.34 points or 1.60 percent to 2,747.30. For the week, the Dow added 0.4 percent, the NASDAQ spiked 1.4 percent and the S&P gained 0.6 percent.
A continued drop by treasury yields contributed to the rally on Wall Street, with the ten-year yield pulling back further off the four-year closing high set on Wednesday.
The continued rebound by treasuries came as the Federal Reserve issued its monetary policy report to Congress, with the central bank hinting that it still plans three interest rates hikes in 2018.
Crude oil prices continued to rise Friday despite further signs of robust U.S. oil production. Nymex April oil futures rose 78 cents or 1.2 percent to $63.55 a barrel.