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Lower Open Anticipated For Indonesia Stock Market

The Indonesia stock market has finished lower in consecutive trading days, dropping more than 100 points or 2 percent along the way. The Jakarta Composite Index now sits just beneath the 5,060-point plateau and it may extend its losing streak on Thursday.

The global forecast for the Asian markets is mixed to lower after the Federal Reserve downgraded its GDP forecast. The European markets were mixed and the U.S. bourses were mostly in the red and the Asian markets also figure to open lower.

The JCI finished modestly lower on Wednesday following losses from the resource and cement stocks, while the financials were mixed.

For the day, the index sank 42.38 points or 0.83 percent to finish at 5,058.48 after trading between 5,051.75 and 5,117.29.

Among the actives, Bank Danamon Indonesia skidded 1.28 percent, while Bank Mandiri shed 0.44 percent, Bank CIMB Niaga soared 3.23 percent, Bank Negara Indonesia tumbled 1.42 percent, Indocement eased 0.22 percent, Semen Indonesia tanked 2.34 percent, Indofood Suskes dropped 0.98 percent, Astra Agro Lestari retreated 1.14 percent, Aneka Tambang surrendered 1.24 percent, Vale Indonesia lost 0.51 percent and Timah, Indosat and Bumi Resources were unchanged.

The lead from Wall Street suggests consolidation as stocks were unable to hold early gains on Wednesday, slipping mostly into the red in the final hour of trade.

The Dow added 36.78 points or 0.13 percent to finish at 28,032.38, while the NASDAQ plunged 139.86 points or 1.25 percent to end at 11,050.47 and the S&P 500 fell 15.71 points or 0.46 percent to close at 3,385.49.

The late-day pullback came despite a dovish monetary policy announcement by the Fed, with the central bank leaving interest rates unchanged and signaling rates are likely to remain at near-zero levels for years to come.

But the Fed also downwardly revised its estimates for GDP growth in 2021 and 2022 to 4.0 percent and 3.0 percent, respectively. GDP growth in 2023 was forecast at 2.5 percent.

The sharp drop by the NASDAQ came as big-name tech companies like Apple (AAPL), Facebook (FB), Netflix (NFLX) and Amazon (AMZN) gave ground after solid gains a day earlier.

In economic news, the Commerce Department noted a slowdown in the pace of retail sales growth in August. Also, the National Association of Home Builders said homebuilder confidence jumped to a record high in September.

Crude oil prices rose sharply on Wednesday, extending gains from the previous session after data showed an unexpected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for December ended up $1.88 or 4.9 percent at $40.16 a barrel.

Closer to home, the central bank in Indonesia will conclude its monetary policy meeting later today and announce its decision on interest rates. The bank is widely expected to keep its benchmark lending rate steady at 4.0 percent. The deposit facility rate is called unchanged at 3.25 percent and the lending facility rate is called steady at 4.75 percent.

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