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Winning Streak Likely To Continue For Indonesia Stock Market

Ahead of Monday's holiday for Pancila Day, the Indonesia stock market had moved higher in six straight sessions, advancing more than 240 points or 5 percent along the way. The Jakarta Composite Index now sits just above the 4,750-point plateau and it's expected to open higher again on Tuesday.

The global forecast for the Asian markets is upbeat on optimism for economic recovery following the Covid-19 measures. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The JCI finished modestly higher on Friday following mixed performances from the financial shares, cement companies and resource stocks.

For the day, the index advanced 37.42 points or 0.79 percent to finish at 4,753.61 after trading between 4,704.79 and 4,755.96.

Among the actives, Bank Danamon Indonesia plunged 4.69 percent, while Bank Mandiri spiked 4.20 percent, Bank Central Asia tumbled 1.98 percent, Bank Negara Indonesia soared 4.64 percent, Indosat skidded 1.46 percent, Indocement dropped 0.82 percent, Semen Indonesia jumped 2.08 percent, Indofood Suskes climbed 1.32 percent, Aneka Tambang accelerated 1.90 percent, Vale Indonesia sank 1.77 percent, Timah plummeted 5.93 percent and Bumi Resources was unchanged.

The lead from Wall Street is positive as stocks extended last week's gains on Monday, sending the major averages to multi-month closing highs.

The Dow added 91.91 points or 0.36 percent to finish at 25,475.02, while the NASDAQ gained 62.18 points or 0.66 percent to end at 9,552.05 and the S&P 500 rose 11.42 points or 0.38 percent to close at 3,055.73.

The continued strength on Wall Street followed a report from the Institute for Supply Management showing U.S. manufacturing activity contracted at a slower rate last month. Also, the Commerce Department showed a less than expected pullback in U.S. construction spending in April.

Traders remain generally optimistic about economies reopening despite political unrest across the country following the death of George Floyd, which has forced a number of major retailers to temporarily close their stores in areas hit hard by protests.

Crude oil prices ticked lower on Monday as traders looked ahead to an upcoming meeting of the OPEC+ group as early as Thursday to discuss output. Crude for July delivery edged down $0.05 to $35.44 a barrel on the day.

Closer to home, Indonesia will see May results for inflation later today. In April, overall inflation was up 0.1 percent on month and 2.7 percent on year, while core CPI climbed 2.9 percent on year.

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