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Indonesia Stock Market Due For Consolidation

The Indonesia stock market has finished higher in four straight sessions, climbing almost 110 points or 1.9 percent along the way. The Jakarta Composite Index now rests just beneath the 6,000-point plateau although investors are likely to cash in on Monday.

The global forecast for the Asian markets is soft, with profit taking likely after last week's rally. The European and U.S. markets were down on Friday and the Asian markets are likely to follow suit.

The JCI finished slightly higher on Friday as gains from the food and financial stocks were capped by weakness from the resource and cement companies.

For the day, the index gained 12.46 points or 0.21 percent to finish at 5,999.61 after trading between 5,981.64 and 6,004.81.

Among the actives, Bank Danamon Indonesia shed 0.28 percent, while Bank Mandiri collected 0.32 percent, Bank Central Asia added 0.30 percent, Indocement dropped 0.87 percent, Semen Indonesia fell 0.40 percent, Indofood Suskes spiked 1.95 percent, Aneka Tambang sank 0.68 percent, Timah tumbled 1.35 percent and Vale Indonesia, Bumi Resources, Bank Negara Indonesia, Bank Rakyat Indonesia and Indosat all were unchanged.

The lead from Wall Street is negative as stocks spent most of Friday's session in the red, handing back gains from earlier in the week.

The Dow shed 277.26 points or 0.94 percent to end at 29,102.51, while the NASDAQ lost 51.64 points or 0.54 percent to 9,520.51 and the S&P 500 fell 18.07 points or 0.54 percent to 3,327.71.

Profit taking fueled to weakness on Wall Street as traders looked to cash in after the strong upward move in previous days. Lingering concerns about the coronavirus also re-emerged after traders shrugged off the worries about the outbreak to drive stocks higher.

However, selling pressure was subdued following the release of the Labor Department report that showed stronger than expected job growth in January.

Crude oil futures closed lower on Friday as worries about the spread of the coronavirus and its impact on the global economy and energy demand weighed on oil prices. West Texas Intermediate crude oil futures for March ended down $0.63 or 1.2 percent at $50.32 a barrel.

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