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Jakarta Stocks May Snap Losing Streak

The Indonesia stock market has moved lower in back-to-back trading days, sliding almost 120 points or 2 percent along the way. The Jakarta Composite Index now rests just above the 5,810-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is positive on easing trade war fears and a jump in crude oil prices. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The JCI finished slightly lower on Tuesday following weakness from the food stocks and mixed performances from the financials, resource stocks and cement companies.

For the day, the index sank 12.47 points or 0.21 percent to finish at 5,811.79 after trading between 5,781.29 and 5,844.95. There were 213 decliners and 152 gainers, with 116 stocks finishing unchanged.

Among the actives, Semen Indonesia plunged 3.12 percent, while Indocement gathered 2.50 percent, Holcim Indonesia gave away 1.63 percent, Lotte Chemical climbed 1.44 percent, Bank Pan Indonesia spiked 4.14 percent, Bank MNC Internasional jumped 2.00 percent, Jasa Marga skidded 1.37 percent, Voksel Electric dropped 1.10 percent, SLJ Global shed 0.94 percent, XL Axiata dipped 0.34 percent, Bank Central Asia collected 0.31 percent, Bank Mandiri retreated 1.16 percent, Bank Rakyat Indonesia slid 1.01 percent, Indosat fell 0.34 percent, Bumi Resources added 0.91 percent, Vale Indonesia declined 1.54 percent, Indofood plummeted 2.87 percent and Aneka Tambang, Bank Danamon Indonesia and Bank Negara Indonesia were unchanged.

The lead from Wall Street is form as stocks moved mostly higher on Tuesday, with traders shrugging off concerns about the escalating trade war between the U.S. and China.

The Dow added 184.84 points or 0.71 percent to 26,246.96, while the NASDAQ gained 60.32 points or 0.76 percent to 7,956.11 and the S&P was up 15.51 points or 0.54 percent to 2,904.31.

Traders expressed relief that the rates of tariffs that the U.S. and China are expected to impose are not as high as feared. However, the tariffs are set to rise on January 1, and the U.S. will impose tariffs on another $267 billion worth of Chinese imports if China takes retaliatory action.

In economic news, the National Association of Home Builders said homebuilder confidence held steady in September.

Crude oil prices edged higher on Tuesday, with traders betting on a possible supply shortage after U.S. sanctions on Iran come into force from early November. Crude oil futures for October delivery ended up $0.94 or 1.4 percent at $69.85 a barrel.

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