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Slight Rebound Tipped For Indonesia Stock Market

The Indonesia stock market on Monday halted the three-day winning streak in which it had advanced more than 100 points or 1.4 percent. The Jakarta Composite Index now rests just beneath the 6,415-point plateau although bargain hunting may give the market a lift on Tuesday.

The global forecast for the Asian markets suggests slight upside, thanks mainly to a surge in crude oil prices. The European and U.S. markets were mixed and little changed and the Asian markets are expected to open in similar fashion.

The JCI finished sharply lower on Monday following losses from the financial shares, cement companies and resource stocks.

For the day, the index plummeted 92.48 points or 1.42 percent to finish at 6,414.74 after trading between 6,410.04 and 6,516.24.

Among the actives, Bank Danamon Indonesia skidded 1.45 percent, while Bank Mandiri shed 0.64 percent, Bank Negara Indonesia tumbled 1.78 percent, Bank Rakyat Indonesia lost 0.45 percent, Indosat dropped 1.46 percent, Indocement retreated 2.75 percent, Indofood Suskes fell 0.40 percent, Unilever Indonesia declined 2.28 percent, Aneka Tambang plummeted 3.39 percent, Timah plunged 2.20 percent and Bumi Resources, Bank Central Asia and United Tractors were unchanged.

The lead from Wall Street is ambiguous as stocks showed a lack of direction on Monday, bouncing back and forth across the unchanged line before ending mixed.

The Dow shed 48.49 points or 0.18 percent to finish at 26,511.05, while the NASDAQ added 17.21 points or 0.22 percent to 8,015.27 and the S&P 500 rose 2.94 points or 0.10 percent to 2,907.97.

The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of earnings news in the coming days from the likes of Coca-Cola (KO), Procter & Gamble (PG), Boeing (BA), Facebook (FB), Microsoft (MSFT), Amazon (AMZN), Intel (INTC), and Exxon Mobil (XOM).

The Easter Monday holiday, which has kept many overseas markets closed on the day, also contributed to light trading activity.

In economic news, the National Association of Realtors reported a significant pullback in existing home sales in March after sales had reached their highest level in almost a year in February.

Crude oil prices rose sharply on Monday after the U.S. ended the waivers it had offered to major importers of Iranian oil. West Texas Intermediate Crude oil futures soared to $65.91 a barrel at one stage, gaining more than 3 percent, before settling at $65.70 on expiration day, up $1.70 or 2.66 percent.

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