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Indonesia Stock Market May Test Support At 6,200 Points

The Indonesia stock market on Monday snapped the three-day winning streak in which it had advanced more than 160 points or 2.4 percent. The Jakarta Composite Index now rests just above the 6,250-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is broadly negative on continuing concerns over the trade dispute between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The JCI finished modestly lower on Monday as losses from the financial shares and resource stocks were mitigated by support from the cement and food companies.

For the day, the index fell 31.54 points or 0.50 percent to finish at 6,250.60 after trading between 6,245.28 and 6,309.10.

Among the actives, Bank Mandiri shed 0.67 percent, while Bank Central Asia lost 0.41 percent, Bank Rakyat Indonesia sank 0.69 percent, Indosat skyrocketed 7.46 percent, Indocement added 0.57 percent, Indofood Suskes gained 0.67 percent, United Tractors plummeted 6.36 percent, Aneka Tambang plunged 2.82 percent, Vale Indonesia dipped 0.31 percent, Timah tumbled 2.01 percent and Bumi Resources, Semen Indonesia, Bank Danamon Indonesia and Bank Negara Indonesia were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and continued to head south throughout the day, extending last week's losses.

The Dow shed 391.00 points or 1.49 percent to 25,896.44, while the NASDAQ lost 95.73 points or 1.20 percent to 7,863.41 and the S&P 500 fell 35.96 points or 1.23 percent to 2,882.69.

The sell-off on Wall Street came amid worries about a prolonged trade war between the U.S. and China after President Donald Trump recently indicated he feels no sense of urgency to resolve the dispute.

Concerns about the impact of increasingly violent protests in Hong Kong also weighed on stocks, with the Hong Kong International Airport canceling all departing flights due to the disruption caused by protesters.

The geopolitical concerns increased the appeal of safe haven assets like bonds, resulting in a steep drop in U.S. treasury yields. The yield on the benchmark ten-year note tumbled to its lowest closing level in almost three years.

Crude oil prices were higher Monday on speculation production cuts by OPEC and fewer shipments from Saudi Arabia will outweigh concerns about near term energy demand outlook. West Texas Intermediate crude oil futures for September ended up $0.43 or 0.8 percent at $54.93 a barrel.

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