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More Pain Predicted For Indonesia Stock Market

The Indonesia stock market on Thursday wrote a finish to the three-day winning streak in which it had climbed almost 90 points or 1.6 percent. The Jakarta Composite Index now rests just above the 5,700-point plateau and it's expected to see continued consolidation on Friday.

The global forecast for the Asian markets continues to be weak, thanks to concerns over global growth and interest rates - while tumbling crude oil prices add to the soft sentiment. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The JCI finished sharply lower on Thursday with broadly based losses - particularly among the financials, resource stocks and cement companies.

For the day, the index plunged 117.85 points or 2.02 percent to finish at 5,702.82 after trading between 5,669.72 and 5,746.24. There were 337 decliners and 75 gainers, with 94 stocks finishing unchanged.

Among the actives, Bukit Darmo Property plunged 4.69 percent, while Lotte Chemical surged 25.00 percent, Voksel Electric plummeted 5.08 percent, Bank Pan Indonesia tumbled 2.99 percent, XL Axiata skidded 2.83 percent, Jasa Marga dropped 2.49 percent, Bank Danamon Indonesia declined 2.81 percent, Bank Central Asia retreated 2.78 percent, Bank Mandiri shed 3.09 percent, Bank Negara Indonesia lost 3.24 percent, Bank Rakyat Indonesia fell 3.32 percent, Indosat slid 0.72 percent, Bumi Resources plunged 6.00 percent, Aneka Tambang tumbled 4.27 percent, Vale Indonesia plummeted 4.82 percent, Indocement dipped 2.51 percent, Semen Indonesia dropped 2.47 percent and Bank MNC Internasional was unchanged.

The lead from Wall Street is negative as stocks opened lower on Thursday and showed wild swings before finishing firmly in the red.

The Dow shed 545.77 points or 2.13 percent to finish at 25,052.97, while the NASDAQ lost 92.99 points or 1.25 percent to 7,329.06 and the S&P fell 57.31 points or 2.06 percent to 2,728.37.

The lower close on Wall Street came even though strength in the bond market led to a significant drop by treasury yields. Even with the decrease in yields, traders remained concerned about the outlook for the interest rates as well as the escalating trade war between the U.S. and China.

Treasuries benefited from the release of a report from the Labor Department showing consumer prices rose by less than expected in September. Also, the Labor Department noted a modest increase in first-time claims for U.S. jobless benefits in the week ended October 6.

Crude oil prices tumbled on Thursday after data showed U.S. crude stockpiles to have risen for a third straight week. Crude oil futures for November delivery ended down $2.20 or 3 percent at $70.97 a barrel.

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