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Indonesia Stock Market May Run Out Of Steam

The Indonesia stock market has climbed higher in back-to-back trading days, advancing more than 140 points or 2.3 percent along the way. The Jakarta Composite Index now rests just beneath the 5,870-point plateau although the rally may stall on Thursday.

The global forecast for the Asian markets suggests mild consolidation thanks to a sharp drop in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The JCI finished sharply higher on Wednesday following gains from the financial shares, cement companies and the resource stocks.

For the day, the index jumped 67.80 points or 1.17 percent to finish at the daily high of 5,868.62 after moving as low as 5,819.17. There were 251 gainers and 144 decliners, with 117 stocks finishing unchanged.

Among the actives, SLJ Global surged 6.25 percent, while Lotte Chemical plummeted 4.68 percent, Bukit Darmo Property spiked 3.23 percent, XL Axiata climbed 1.43 percent, Bank Pan Indonesia skidded 1.38 percent, Jasa Marga added 0.68 percent, Bank Central Asia shed 0.31 percent, Bank Mandiri climbed 1.15 percent, Bank Negara Indonesia advanced 1.03 percent, Bank Rakyat Indonesia soared 2.33 percent, Indosat lost 0.776 percent, Bumi Resources gathered 1.68 percent, Aneka Tambang was up 2.63 percent, Vale Indonesia gained 3.82 percent, Indocement eased 0.15 percent, Semen Indonesia collected 0.28 percent and Bank Danamon Indonesia, Bank MNC Internasional and Voksel Electric were unchanged.

The lead from Wall Street is soft as stocks opened lower Wednesday before bouncing back and forth across the unchanged line and eventually ended up in the red.

The Dow shed 91.74 points or 0.36 percent to end at 25,706.68, while the NASDAQ lost 2.79 points or 0.04 percent to 7,642.70 and the S&P 500 fell 0.71 points or 0.03 percent to 2,809.21.

The lackluster performance came as the Federal Reserve released the minutes of its September monetary policy meeting, which showed the central bank continues to favor a gradual approach to raising interest rates - meaning the economy is evolving as anticipated.

During the meeting, the Fed decided to raise rates by a quarter-point for a third time this year to 2 to 2.25 percent and forecast another rate hike before the end of the year. The central bank's forecasts also pointed to three rate hikes in 2019.

Mixed earnings news added to the sentiment as tech giant IBM Corp. (IBM) reported weaker than expected revenues, while Netflix (NFLX) beat the street.

Crude oil futures declined sharply on Wednesday, after data showed crude stockpiles swelled last week. Crude oil futures for November delivery ended down $2.17 or 3 percent at $69.75 a barrel, the lowest settlement in a month.

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