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Bargain Hunting Expected To Boost Indonesia Stock Market

The Indonesia stock market has fallen lower in three straight sessions, giving away almost 230 points or 3.8 percent in that span. The Jakarta Composite Index now rests just above the 5,980-point plateau although it's expected to find support on Thursday.

The global forecast for the Asian markets is positive on global trade optimism and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

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

For the day, the index dropped 90.32 points or 1.49 percent to finish at the daily low of 5,980.88 after peaking at 6,107.44.

Among the actives, Bank Danamon Indonesia shed 0.81 percent, while Bank Mandiri fell 0.34 percent, Bank Central Asia lost 0.64 percent, Bank Negara Indonesia tumbled 2.66 percent, Bank Rakyat Indonesia plunged 3.95 percent, Indosat plummeted 5.48 percent, Indocement retreated 2.81 percent, Semen Indonesia dropped 1.17 percent, Indofood Suskes skidded 1.96 percent, United Tractors slid 0.69 percent, Unilever Indonesia sank 1.98 percent, Bumi Resources cratered 7.14 percent, Aneka Tambang gave away 1.41 percent, Timah surrendered 3.60 percent and Vale Indonesia declined 2.60 percent.

The lead from Wall Street is upbeat as stocks shook off initial weakness and moved mostly higher on Wednesday, continuing to recover from Monday's sell-off.

The Dow added 115.97 points or 0.45 percent to end at 25,648.02, while the NASDAQ jumped 87.65 points or 1.13 percent to 7,822.15 and the S&P 500 rose 16.55 points or 0.58 percent to 2,850.96.

The strength on Wall Street reflected a positive reaction to reports President Donald Trump plans to delay imposing steep tariffs on auto imports. Reports indicated Trump plans to delay imposing the auto tariffs by up to six months in order to allow negotiations to continue.

Stocks initially came under pressure a Commerce Department showing an unexpected pullback in U.S. retail sales in April. Negative sentiment was also generated by a Federal Reserve report showing an unexpected drop in industrial output in April.

Crude oil futures inched higher on Wednesday, despite data from the Energy Information Administration that showed an unexpected increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up $0.24 at $62.02 a barrel.

Closer to homer, the central bank in Indonesia will wrap up its monetary policy meeting later today and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate steady at 6.00 percent.

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