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Rebound Tipped For Indonesia Stock Market

The Indonesia stock market has finished lower in two of three days since the end of the four-day winning streak in which it had advanced almost 110 points or 1.9 percent. The Jakarta Composite Index now rests just beneath the 5,915-point plateau although it may bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on easing coronavirus fears and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The JCI finished modestly lower on Wednesday following losses from the cement, resource and food sectors, while the financials came in mixed.

For the day, the index sank 41.32 points or 0.69 percent to finish at 5,913.08 after trading between 5,895.72 and 5,962.35.

Among the actives, Bank Danamon Indonesia skidded 1.17 percent, while Bank Mandiri collected 0.32 percent, Bank Central Asia added 0.29 percent, Bank Negara Indonesia shed 0.34 percent, Bank Rakyat Indonesia gained 0.44 percent, Indosat dropped 0.91 percent, Indocement tumbled 1.51 percent, Semen Indonesia plummeted 5.20 percent, Indofood Suskes cratered 8.79 percent, Aneka Tambang lost 0.69 percent, Vale Indonesia fell 0.30 percent, Timah sank 0.70 percent and Bumi Resources was unchanged.

The lead from Wall Street is positive as stocks made a strong move to the upside on Wednesday, adding to the modest gains in the previous session and sending the major averages to new record closing highs.

The Dow added 275.08 points or 0.94 percent to end at 29,551.42, while the NASDAQ rose 87.02 points or 0.90 percent to 9,725.96 and the S&P 500 gained 21.70 points or 0.65 percent to 3,379.45.

The rally on Wall Street came as traders pushed stocks to new record highs despite concerns about the economic impact of the coronavirus outbreak; a recent slowdown in the rate of growth in new infections has led to optimism the outbreak is being contained.

Traders also kept an eye on Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee. Powell said the Fed is closely monitoring the coronavirus outbreak but also highlighted the resilience of the U.S. economy.

Despite a jump in U.S. crude stockpiles last week, crude oil prices moved up sharply on Wednesday amid expectations that OPEC will significantly cut crude production. West Texas Intermediate Crude oil futures for March ended up $1.23 or 2.5 percent at $51.17 a barrel.

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