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Indonesia Bourse May Reverse Friday's Losses

The Indonesia stock market on Friday ended the three-day winning streak in which it had advanced almost 65 points or 1.1 percent. The Jakarta Composite Index now rests just above the 6,370-point plateau although it's likely to rebound on Monday.

The global forecast for the Asian markets is upbeat on continued optimism over the outlook for interest rates. The European markets were mixed and the U.S. bourses were firmly higher and the Asian markets are expected to follow the latter lead.

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

For the day, the index shed 43.72 points or 0.68 percent to finish at 6,373.35 after trading between 6,369.50 and 6,425.32.

Closer to home, Bank Danamon Indonesia tumbled 3.70 percent, while Bank Mandiri collected 0.94 percent, Bank Central Asia shed 0.25 percent, Bank Negara Indonesia lost 0.54 percent, Indosat skidded 2.53 percent, Indocement dropped 2.16 percent, Semen Indonesia dipped 0.20 percent, Indofood Suskes retreated 1.09 percent, Aneka Tambang lost 0.59 percent, Vale Indonesia fell 1.64 percent, Timah was down 2.42 percent and Bumi Resources and Bank Rakyat Indonesia were unchanged.

The lead from Wall Street is positive as stocks opened higher Friday and remained in the green as the major averages extended recent gains and set fresh record closing highs.

The Dow added 243.95 points or 0.90 percent to 27,332.03, while the NASDAQ gained 48.10 points or 0.59 percent to 8,244.14 and the S&P 500 rose 13.86 points or 0.46 percent to 3,013.77. For the week, the Dow surged 1.5 percent, the NASDAQ climbed 1 percent and the S&P rose 0.8 percent.

The markets continued to benefit from renewed optimism about the Federal Reserve lowering interest rates as soon as its next meeting later this month following comments from Fed Chairman Jerome Powell.

Trading activity was somewhat subdued, however, as traders brace for the unofficial start of earnings season this week.

Crude oil futures ended flat on Friday as traders weighed near term prospects for energy demand and supply. West Texas Intermediate Crude oil futures for August ended at $60.21 a barrel, up just a penny over previous close. or the week, oil futures gained about 4.7 percent.

Closer to home, Indonesia will release June trade data later today; in May, imports were worth $14.53 billion and exports were at $14.74 billion for a trade surplus of $0.21 billion.

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