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Oversold Indonesia Bourse Nonetheless Called Lower On Friday

The Indonesia stock market has finished lower in two straight sessions, plunging more than 350 points or 7 percent along the way. The Jakarta Composite Index now sits just beneath the 4,900-point plateau and it's got another weak lead for Friday's trade.

The global forecast for the Asian markets is weak as optimism waned in the United States over a coronavirus relief package. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The JCI finished with heavy damage on Thursday with damage across the board - especially from the financials and resource companies.

For the day, the index plummeted 257.92 points or 5.01 percent to finish at 4,891.46 after trading between 4,878.28 and 5,084.48.

Among the actives, Bank Danamon Indonesia shed 6.75 percent, while Bank Mandiri lost 6.93 percent, Bank CIMB Niaga tumbled 6.96 percent, Bank Negara Indonesia skidded 6.87 percent, Indosat declined 6.31 percent, Indocement surrendered 6.87 percent, Semen Indonesia tanked 6.93 percent, Indofood Suskes fell 4.29 percent, Astra Agro Lestari retreated 6.65 percent, Aneka Tambang slid 6.92 percent, Vale Indonesia dipped 3.18 percent, Timah sank 6.83 percent and Bumi Resources was unchanged.

The lead from Wall Street is negative as stocks were unable to hold on to early gains Thursday, reversing course in the late morning before finishing firmly in the red.

The Dow plunged 405.89 points or 1.45 percent to finish at 27,534.58, while the NASDAQ tumbled 221.97 points or 1.99 percent to end at 10,919.59 and the S&P 500 dropped 59.77 points or 1.76 percent to close at 3,339.19.

Strength among tech stocks contributed to the early advance on Wall Street, but they also helped to lead the subsequent pullback by the markets.

Adding to the negative sentiment, Senate Republicans failed to advance a new coronavirus stimulus bill. Facing unanimous opposition from Democrats, the bill couldn't clear a key procedural hurdle in the latest sign of the difficulty lawmakers have had in passing a new relief package.

In economic news, the Labor Department said initial jobless claims were roughly unchanged last week, defying expectations for a notable decline. Also, the Labor Department said producer prices increased slightly more than expected last month.

Crude oil prices drifted lower Thursday after data showed an increase in U.S. crude inventories last week, while easing of output curbs by OPEC+ also contributed to oil's weakness. West Texas Intermediate Crude oil futures for October ended down $0.75 or 2 percent at $37.30 a barrel.

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