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Indonesia Shares Poised To Halt Losing Streak

The Indonesia stock market has finished lower in consecutive trading days, sliding more than 100 points or 1.6 percent along the way. The Jakarta Composite Index now rests just above the 6,250-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is firm thanks to economic optimism and a surge in crude oil prices. The European and U.S. markets were higher and the Asian markets figure to follow suit.

The JCI finished sharply lower on Wednesday as losses from the financial shares were tempered by support from the resource stocks.

For the day, the index sank 87.76 points or 1.38 percent to finish at 6,251.48 after trading between 6,220.69 and 6,342.19. There were 209 decliners and 142 gainers, with 119 stocks finishing unchanged.

Among the actives, Bumi Resources spiked 2.24 percent, while Vale Indonesia gathered 0.66 percent, Bank Danamon Indonesia shed 0.70 percent, Bank Mandiri skidded 1.91 percent, XL Axiata climbed 1.39 percent, Jasa Marga jumped 1.20 percent, Voksel Electric advanced 0.70 percent, Lotte Chemical gained 0.54 percent, Tiga Pilar Sejahtera Food was up 0.42 percent, Indofood perked 1.32 percent and Indocement, Bank MNC Internasional and Bank Pan Indonesia were unchanged.

The lead from Wall Street is positive as stocks moved mostly higher on Wednesday, adding to gains from the previous session as the major averages hit fresh record closing highs.

The Dow rose 98.67 points or 0.40 percent to 24,922.68, while the NASDAQ advanced 58.63 points or 0.84 percent to 7,065.53 and the S&P climbed 17.25 points or 0.64 percent to 2,713.06.

The continued strength on Wall Street came as upbeat data added to recent optimism about the economic outlook.

The Institute for Supply Management said growth in manufacturing activity unexpectedly accelerated in December, while the Commerce Department noted a bigger than expected increase in construction spending in November.

Stocks remained positive following the release of the minutes of the Federal Reserve's latest monetary policy meeting - which showed that most participants reiterated their support for continuing a gradual approach to raising interest rates.

Meanwhile, the Fed said it raised its economic projections due to the massive tax reform bill passed by Republicans and signed by President Donald Trump.

Crude oil futures continued to soar Wednesday thanks to the threat of supply disruptions from the Middle East and a weaker dollar. WTI light sweet crude oil was up $1.26 or 2.1 percent to $61.63/bbl, the highest since December 2014.

by RTT Staff Writer

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