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Indonesia Stock Market May Stop The Bleeding On Thursday

The Indonesia stock market has finished lower in three straight sessions, sinking almost 100 points or 1.6 percent along the way. The Jakarta Composite Index now sits just beneath the 6,000-point plateau although it may find traction on Thursday.

The global forecast for the Asian markets is positive after a couple of days of weakness, although sinking crude oil prices may cap the upside. The European and U.S. markets were up and the Asian markets are tipped to follow suit.

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

For the day, the index lost 45.08 points or 0.75 percent to finish at 5,993.24 after trading between 5,989.98 and 6,025.50.

Among the actives, Bank Danamon Indonesia shed 0.76 percent, Bank CIMB Niaga lost 0.49 percent, Bank Negara Indonesia tanked 2.53 percent, Bank Central Asia gave away 1.12 percent, Bank Mandiri skidded 1.21 percent, Bank Rakyat Indonesia tumbled 1.86 percent, Indosat climbed 1.17 percent, Indocement dropped 0.98 percent, Semen Indonesia sank 0.95 percent, Indofood Suskes added 0.37 percent, United Tractors rallied 2.16 percent, Astra International retreated 1.42 percent, Astra Agro Lestari spiked 2.89 percent, Aneka Tambang advanced 0.85 percent, Vale Indonesia plunged 2.58 percent, Timah rose 0.32 percent, Perusahaan Gas surged 4.17 percent and Bumi Resources was unchanged.

The lead from Wall Street is solid as the major averages shook off early weakness on Wednesday and finished firmly in the green, snapping a two-day slide.

The Dow spiked 316.01 points or 0.93 percent to finish at 34,137.31, while the NASDAQ jumped 163.95 points or 1.19 percent to end at 13,950.22 and the S&P 500 climbed 38.48 points or 0.93 percent to close at 4,173.42.

Despite concerns about high valuations, traders have largely been reluctant to sell stocks amid worries about missing out on further upside.

Stocks linked to the economy reopening saw significant strength, while shares of Netflix (NFLX) moved sharply lower after the company reported much weaker than expected subscriber growth.

Crude oil futures declined sharply on Wednesday amid rising concerns about the outlook for energy demand due to rising coronavirus infections in India. Data showing an unexpected uptick in U.S. crude inventories also weighed on oil prices. West Texas Intermediate Crude oil futures for June fell $1.32 or 2.1 percent at $61.35 a barrel, the lowest close since April 13.

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