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Indonesia Shares May Add To Wednesday's Gains

The Indonesia stock market on Wednesday snapped the two-day losing streak in which it had plunged almost 120 points or 2 percent. The Jakarta Composite Index now rests just above the 5,840-point plateau and it's expected to open higher again on Thursday.

The global forecast for the Asian markets suggests mild upside, thanks to a bump in crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The JCI finished slightly higher on Wednesday following mixed performances from the financial shares and the resource stocks.

For the day, the index added 3.35 points or 0.06 percent to finish at the daily high of 5,841.46 after moving as low as 5,738.58. There were 212 decliners and 151 gainers, with 122 stocks finishing unchanged.

Among the actives, Bumi Resources surged 4.72 percent, while XL Axiata spiked 3.43 percent, Lotte Chemical advanced 2.35 percent, Bank Pan Indonesia tumbled 2.86 percent, Bukit Darmo Property jumped 2.60 percent, Bank MNC Internasional collected 2.00 percent, Tiga Pilar Sejahtera Food skidded 1.94 percent, Bank Danamon Indonesia lost 1.30 percent, Jasa Marga shed 0.73 percent, Vale Indonesia eased 0.29 percent and Voksel Electric was unchanged.

The lead from Wall Street is positive as stocks fluctuated on Wednesday but finished mostly higher - offsetting somewhat the sharp pullback in the previous session.

The Dow rose 62.52 points or 0.25 percent to 24,768.93, the NASDAQ advanced 46.67 points or 0.63 percent to 7,398.30 and the S&P 500 climbed 11.01 points or 0.41 percent to 2,722.46.

Buying interest was subdued, with geopolitical uncertainty keeping some traders on the sidelines after North Korea threatened to cancel an historic meeting between leader Kim Jong Un and President Donald Trump.

In economic news, the Commerce Department reported a sharp pullback in new residential construction in April, while building permits also tumbled. Also, the Federal Reserve said industrial production increased more than expected in April.

Crude oil futures nudged higher Wednesday amid a large decrease in U.S. oil stockpiles. June WTI oil inch up by 18 cents, or nearly 0.3 percent, to settle at $71.49/bbl.

Closer to home, the central bank in Indonesia will wrap up its monetary policy meeting today and announce its decision on interest rates. The bank is tipped to hike its benchmark lending rate by 25 basis points, to 4.50 percent from 4.25 percent.

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