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Indonesia Bourse May Test Support At 6,200 Points

The Indonesia stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 70 points or 1.1 percent. The Jakarta Composite Index now rests just above the 6,240-point plateau and it's expected to open under pressure again on Monday.

The global forecast for the Asian markets is mixed to lower on concerns over bond yields and sliding crude oil prices. The European and U.S. markets were mixed with a soft bias and the Asian markets are tipped to follow that lead.

The JCI finished modestly lower on Friday following losses from the financial shares, cement companies and resource stocks.

For the day, the index lost 47.85 points or 0.76 percent to finish at 6,241.80 after trading between 6,184.52 and 6,302.39.

Among the actives, Bank Danamon Indonesia tanked 3.41 percent, while Bank CIMB Niaga rallied 2.02 percent, Bank Negara Indonesia surrendered 2.06 percent, Bank Central Asia rose 0.07 percent, Bank Mandiri tumbled 1.99 percent, Bank Rakyat Indonesia eased 0.42 percent, Indosat surrendered 2.63 percent, Indocement cratered 4.21 percent, Semen Indonesia skidded 1.21 percent, Indofood Suskes retreated 1.22 percent, United Tractors plunged 4.65 percent, Astra International slid 3.14 percent, Astra Agro Lestari shed 0.66 percent, Aneka Tambang sank 4.05 percent, Vale Indonesia declined 3.57 percent, Timah dropped 3.90 percent, Bumi Resources plummeted 6.15 percent and Telkom Indonesia was unchanged.

The lead from Wall Street is volatile after the major averages saw wild swings on Friday, finally finishing on opposite sides of the unchanged line.

The Dow tumbled 469.64 points or 1.50 percent to finish at 30,932.37, while the NASDAQ gained 72.92 points or 0.56 percent to close at 13,192.35 and the S&P 500 fell 18.19 points or 0.48 percent to close at 3,811.15. For the week, the NASDAQ plummeted 4.9 percent, the S&P sank 2.4 percent and the Dow lost 1.8 percent.

The volatility came as traders watched the bond markets following the recent spike in yields. Yields also fluctuated as the day progressed, rebounding near the unchanged line after seeing early weakness before moving to the downside.

The fluctuations in the bond markets followed another batch of upbeat U.S. economic data. The Commerce Department said U.S. personal income skyrocketed in January, reflecting the issuance of $600 stimulus checks.

But the report also showed inflation remained relatively tame. Concerns about inflation have weighed on treasuries despite Fed Chair Jerome Powell's repeated assurances the central bank plans to maintain interest rates at near-zero levels for the foreseeable future.

Crude oil prices drifted lower Friday as the dollar gained strength amid rising bond yields and solid economic data. West Texas Intermediate Crude oil futures for April ended down $2.03 or 3.2 percent at $61.50 a barrel.

Closer to home, Indonesia will see February numbers for consumer prices later today, with forecasts suggesting an increase of 0.09 percent on month and 1.38 percent on year - slowing from 0.26 percent on month and 1.55 percent on year in January. Core CPI is pegged higher at 1.52 percent on year, down from 1.56 percent in the previous month.

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