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Indonesia Stock Market Tipped To Open In The Red

The Indonesia stock market on Monday snapped the three-day losing streak in which it had stumbled almost 80 points or 1.3 percent. The Jakarta Composite Index now rests just above the 6,435-point plateau although it may see renewed selling pressure again on Tuesday.

The global forecast for the Asian markets suggests mild consolidation on weak earnings news and falling crude oil prices. The European markets were slightly higher and the U.S. bourses were slightly lower and the Asian markets are tipped to follow the latter lead.

The JCI finished modestly higher on Monday as gains from the resource and food stocks were capped by weakness from the cement companies and a mixed bag from the financial sector.

For the day, the index rose 29.28 points or 0.46 percent to finish at 6,435.15 after trading between 6,415.12 and 6,442.03.

Among the actives, Bank Danamon Indonesia shed 0.25 percent, while Bank Mandiri collected 0.34 percent, Bank Central Asia eased 0.09 percent, Bank Rakyat Indonesia advanced 0.93 percent, Indosat sank 0.73 percent, Indocement lost 0.59 percent, Semen Indonesia skidded 1.35 percent, United Tractors climbed 1.27 percent, Indofood Suskes jumped 1.19 percent, Unilever dropped 1.31 percent, Bumi Resources spiked 1.82 percent, Aneka Tambang rose 0.57 percent, Vale Indonesia perked 0.60 percent, Timah soared 2.27 percent and Bank Negara Indonesia was unchanged.

The lead from Wall Street is soft as stocks opened lower on Monday; they made back ground as the day progressed but still finished slightly in the red.

The Dow shed 27.53 points or 0.10 percent to finish at 26,384.77, while the NASDAQ lost 8.15 points or 0.10 percent to 7,976.01 and the S&P 500 fell 1.83 points or 0.06 percent to end at 2,905.58.

The weakness on Wall Street reflected a negative reaction to earnings news from Goldman Sachs (GS) and Citigroup (C), while traders were reluctant to make significant moves ahead of more quarterly results in the coming days.

In economic news, the New York Federal Reserve reported that growth in regional manufacturing activity picked up somewhat in April but remained fairly subdued.

Crude oil futures edged lower on Monday on reports Russia and OPEC might increase production to boost their market share. West Texas Intermediate crude oil futures for May ended down $0.49 or 0.8 percent at $63.40 a barrel.

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