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Higher Open Expected For Indonesia Stock Market

The Indonesia stock market on Monday snapped the two-day winning streak in which it had gained almost 70 points or 1.2 percent. The Jakarta Composite Index now rests just beneath the 6,090-point plateau although it's likely to climb higher again on Tuesday.

The global forecast for the Asian markets suggests mild upside, supported mainly by crude oil prices. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The JCI finished slightly lower on Monday following losses from the resource stocks and a mixed picture from the financials.

For the day, the index eased 6.72 points or 0.11 percent to finish at 6,088.16 after trading between 6,052.97 and 6,094.99.

Among the actives, Bank Danamon Indonesia tanked 2.37 percent, while Bank CIMB Niaga shed 0.50 percent, Bank Negara Indonesia sank 0.92 percent, Bank Central Asia collected 0.54 percent, Bank Mandiri dropped 0.81 percent, Bank Rakyat Indonesia surrendered 2.12 percent, Indosat advanced 0.75 percent, Indocement declined 1.86 percent, United Tractors retreated 1.65 percent, Astra International rose 0.46 percent, Astra Agro Lestari tumbled 1.76 percent, Aneka Tambang plunged 2.70 percent, Vale Indonesia skidded 1.46 percent, Timah dropped 1.30 percent and Bumi Resources, Semen Indonesia and Indofood Suskes were unchanged.

The lead from Wall Street is mixed as the major averages opened higher on Monday, although the NASDAQ quickly slipped into the red and finished that way. The Dow and the S&P went on to halt five-session slides.

The Dow jumped 261.91 points or 0.76 percent to finish at 34,869.63, while the NASDAQ dipped 9.91 points or 0.07 percent to close at 15,105.58 and the S&P 500 rose 10.15 points or 0.23 percent to end at 4,468.73.

The strength on Wall Street came as traders went bargain hunting following the downward move seen over the past several sessions.

However, the looming Federal Reserve meeting made traders reluctant to make significant moves, with the central bank potentially providing an update on the outlook for its asset purchase program.

The Fed's two-day monetary policy meeting is scheduled for next week, but recent signs of slowing economic momentum could lead the central bank to hold off on discussing tapering.

The price of crude oil showed a notable move to the upside during trading on Monday, reflecting lingering concerns about U.S. supply. After jumping $1.58 or 2.3 percent to $69.72 a barrel last Friday, crude for October delivery climbed $0.73 or 1 percent to $70.45 a barrel.

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