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Continued Consolidation Called For Indonesia Shares

The Indonesia stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day slide in which it had dropped almost 50 points or 1 percent. The Jakarta Composite Index now rests just above the 5,110-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is soft on coronavirus concerns, stimulus questions and falling oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The JCI finished slightly lower on Tuesday following mixed performances from the financial shares and resource stocks.

For the day, the index dipped 3.68 points or 0.07 percent to finish at 5,112.99 after trading between 5,097.42 and 5,143.29.

Among the actives, Bank Danamon Indonesia skidded 1.07 percent, while Bank Mandiri shed 0.43 percent, Bank Central Asia climbed 1.39 percent, Bank Negara Indonesia collected 0.65 percent, Indosat tumbled 1.95 percent, Indocement added 0.41 percent, Semen Indonesia rose 0.27 percent, Indofood Suskes sank 0.77 percent, Aneka Tambang lost 0.69 percent, Vale Indonesia skidded 1.15 percent, Timah soared 2.07 percent and Bumi Resources was unchanged.

The lead from Wall Street is negative as stocks moved mostly lower on Tuesday, largely offsetting the upward move seen in the previous session.

The Dow dropped 205.49 points or 0.77 percent to finish at 26,379.28, while the NASDAQ sank 134.18 points or 1.27 percent to end at 10,402.09 and the S&P 500 fell 20.97 points or 0.65 percent to finish at 3,218.44.

The pullback by stocks came as traders kept an eye on developments in Washington after Republicans unveiled their version of a new coronavirus relief bill. The GOP bill includes popular provisions like another $1,200 stimulus payment to American as well as more funding for the Paycheck Protection Program.

However, the legislation also slashes unemployment benefits and provides liability protections for businesses and doctors, which could lead to an impasse in negotiations with Democrats.

Negative sentiment was also generated by a report from the Conference Board showing consumer confidence fell more than expected in July.

Traders were also looking ahead to today's Federal Reserve's monetary policy announcement. While the Fed is widely expected to leave interest rates unchanged, traders will look to the accompanying statement for clues about future plans to provide additional economic stimulus.

Crude oil futures settled lower on Tuesday amid concerns about the outlook for near term energy demand due to the surge in coronavirus cases and fears of fresh lockdown measures. West Texas Intermediate Crude oil futures for September slid $0.56 or 1.4 percent at $41.04 a barrel.

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