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Indonesia Stock Market May Take Further Damage

The Indonesia stock market has moved lower in two straight sessions, sinking more than 60 points or 0.9 percent along the way. The Jakarta Composite Index now rests just beneath the 6,375-point plateau and the losses may accelerate on Monday.

The global forecast for the Asian markets is negative on disappointing earnings news and ongoing concerns over the spread of the coronavirus. The European and U.S. markets were down and the Asia bourses figure to follow suit.

The JCI finished modestly lower on Friday following losses from the financial shares and a mixed picture from the resource stocks.

For the day, the index dropped 54.90 points or 0.85 percent to finish at 6,373.41 after trading between 6,341.25 and 6,472.31.

Among the actives, Bank Danamon Indonesia tanked 2.33 percent, while Bank Mandiri tumbled 1.82 percent, Bank Negara Indonesia declined 1.94 percent, Bank Rakyat Indonesia stumbled 3.98 percent, Indosat dropped 0.81 percent, Telkom Indonesia slid 0.57 percent, Indocement advanced 0.85 percent, Semen Indonesia rose 0.21 percent, Indofood Suskes shed 0.74 percent, United Tractors fell 0.38 percent, Astra Agro Lestari surrendered 2.42 percent, Aneka Tambang retreated 1.89 percent, Vale Indonesia gained 0.38 percent, Timah surged 3.54 percent, Bumi Resources skyrocketed 14.29 percent and Bank CIMB Niaga was unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Friday; the major averages recouped some of the losses but still finished firmly in the red.

The Dow shed 177.26 points or 0.57 percent to finish at 30,814.26, while the NASDAQ sank 114.14 points or 0.87 percent to end at 12,998.50 and the S&P 500 fell 27.29 points or 0.72 percent to close at 3,768.25. For the week, the Dow lost 0.9 percent and the NASDAQ and S&P both fell 1.5 percent.

The early sell-off on Wall Street reflected a negative reaction to disappointing earnings news from financial giants Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM).

Negative sentiment was also generated by a report from the Commerce Department showing a continued decline in U.S. retail sales in December. But the Federal Reserve released a separate report showing U.S. industrial production jumped much more than expected last month.

Crude oil futures settled sharply lower on Friday as worries about energy demand resurfaced amid rising coronavirus cases and tighter restrictions. West Texas Intermediate Crude oil futures for February ended down $1.21 or 2.3 percent at $52.36 a barrel.

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