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Indonesia Bourse May Extend Thursday's Losses

The Indonesia stock market on Thursday halted the eight-day winning streak in which it had soared more than 420 points or 9 percent. The Jakarta Composite Index now sits just above the 4,915-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets is soft, with profit taking likely after recent strength. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished modestly lower on Thursday as losses from the cement stocks were mitigated by support from the resource companies and a mixed picture from the financials.

For the day, the index lost 24.30 points or 0.49 percent to finish at 4,916.70 after trading between 4,899.39 and 5,014.76.

Among the actives, Bank Danamon Indonesia soared 4.33 percent, while Bank Mandiri tumbled 2.67 percent, Bank Central Asia collected 0.17 percent, Bank Negara Indonesia added 0.24 percent, Indosat jumped 1.46 percent, Indocement tanked 3.36 percent, Semen Indonesia skidded 1.03 percent, Indofood Suskes dropped 0.81 percent, Aneka Tambang accelerated 2.70 percent, Vale Indonesia gained 2.08 percent, Timah skyrocketed 11.46 percent and Bumi Resources was unchanged.

The lead from Wall Street offers little clarity as stocks turned in a lackluster performance on Thursday before eventually ending the day mixed.

The Dow added 11.93 points or 0.05 percent to finish at 26,281.82, while the NASDAQ shed 67.10 points or 0.69 percent to end at 9,615.81and the S&P 500 fell 10.52 points or 0.34 percent to close at 3,112.35.

The choppy trading on Wall Street came as traders took a breath to digest the recent strength and lock in gains; they also seemed reluctant to make more significant moves ahead of the Labor Department's closely watched monthly jobs report later today.

In economic news, the Labor Department said the pace of decline in first-time claims for unemployment benefits has begun to stall a bit, although there was an unexpected increase in continuing claims.

Earlier in the day, some buying interest was generated in reaction to the European Central Bank announcing additional stimulus to deal with the economic fallout from the coronavirus pandemic.

Crude oil prices edged higher on Thursday after data showed that leading oil producers were in compliance with agreed production cuts. West Texas Intermediate Crude oil futures for July ended up $0.12 or 0.3 percent at $37.41 a barrel.

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