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Rebound Expected For Indonesia Stock Market

The Indonesia stock market on Thursday snapped the four-day winning streak in which it had climbed almost 110 points or 1.9 percent. The Jakarta Composite Index now rests just above the 5,900-point plateau and it's expected to find renewed support on Friday.

The global forecast for the Asian markets is upbeat thanks to solid economic data and a rebound in the price of crude oil. The European and U.S. markets were up and the Asian markets are expected to follow that lead.

The JCI finished modestly lower on Thursday following losses from the financial shares, resource stocks and food companies.

For the day, the index sank 49.57 points or 0.83 percent to finish at the daily low of 5,901.91 after peaking at 5,956.40. There were 217 decliners and 127 gainers, with 101 stocks finishing unchanged.

Among the actives, Bank Pan Indonesia skidded 2.50 percent, while Bank Danamon Indonesia retreated 1.37 percent, Bank Mandiri lost 0.75 percent, Tiga Pilar Sejahtera Food tumbled 2.14 percent, Indofood was down 2.03 percent, Lotte Chemical dropped 1.57 percent, XL Axiata shed 0.54 percent, Bumi Resources plummeted 5.94 percent, Vale Indonesia plunged 4.12 percent and Bank MNC Internasional was unchanged.

The lead from Wall Street is positive as stocks moved higher on Thursday as the major averages again hit fresh record closing highs.

The Dow rose 113.75 points or 0.50 percent to 22,775.39, while the NASDAQ advanced 50.73 points or 0.78 percent to 6,585.36 and the S&P added 14.33 points or 0.56 percent to 2,552.07.

Positive sentiment was generated after the House approved a $4.1 trillion budget resolution. The resolution includes major spending cuts but is largely seen as a vehicle for Republicans to enact their proposed tax cuts.

Trading activity was subdued ahead of the closely watched monthly jobs report due later today. Employment is expected to rise by 90,000 jobs in September, and the unemployment rate is expected to hold at 4.4 percent.

In economic news, the Labor Department said first-time claims for unemployment benefits fell more than expected in the week ended September 30. Also, the Commerce Department said the trade deficit narrowed by more than expected in August, and also that factory orders jumped 1.2 percent.

Crude oil rebounded on Thursday after weakness earlier in the week. November WTI crude oil was up 81 cents of 1.6 percent to $50.79/bbl.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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