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Indonesia Stock Market May Add To Its Winnings

The Indonesia stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day slide in which it had stumbled almost 65 points or 1.2 percent. The Jakarta Composite Index now rests just above the 4,905-point plateau and it may pick up steam on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism for an economic recovery. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The JCI finished slightly higher on Tuesday following gains from the cement stocks and mixed performances from the financials and resource companies.

For the day, the index rose 3.57 points or 0.07 percent to finish at 4,905.39 after trading between 4,894.12 and 4,939.84.

Among the actives, Bank Danamon Indonesia skidded 1.10 percent, while Bank Mandiri rose 0.20 percent, Bank Central Asia collected 0.35 percent, Bank Negara Indonesia fell 0.22 percent, Indosat tumbled 1.26 percent, Indocement added 0.21 percent, Semen Indonesia jumped 1.58 percent, Indofood Suskes plunged 3.33 percent, United Tractors dropped 0.90 percent, Timah lost 0.83 percent, Aneka Tambang spiked 1.68 percent and Bumi Resources and Vale Indonesia were unchanged.

The lead from Wall Street is broadly positive as stocks moved notably higher on Tuesday, extending the strong upward move seen in the previous session.

The Dow jumped 217.08 points or 0.85 percent to finish at 25,812.88, while the NASDAQ soared 184.61 points or 1.87 percent to end at 10.058.77 and the S&P 500 advanced 47.05 points or 1.54 percent to close at 3,100.29.

Traders continued to express optimism about the economic outlook despite the continued spike in new coronavirus cases across several states.

Adding to the positive sentiment, the Conference Board reported a bigger than expected improvement in consumer confidence in June. Also, a separate report released by MNI Indicators showed a continued contraction in Chicago-area business activity last month.

Traders also kept an eye on Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee regarding the response to the coronavirus pandemic. Powell said output and employment remain far below pre-pandemic levels and cautioned the outlook for the economy is "extraordinarily uncertain."

Crude oil prices drifted lower on Tuesday as worries about the outlook for energy demand persisted due to continued surge in new cases of coronavirus around the world. West Texas Intermediate crude oil futures for August ended down $0.43 or 1.1 percent at $39.27 a barrel.

Closer to home, Indonesia will provide Q1 numbers for business confidence and June inflation figures later today. In the previous three months, the business confidence index score was 104.82. Overall inflation is tipped to rise 0.02 percent on month and 1.84 percent on year after gaining 0.07 percent on month and 2.19 percent on year in May. Core CPI is pegged at 2.46 percent on year, slowing from 2.65 percent in May.

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