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Indonesia Bourse Expected To Return Under Pressure On Monday

Ahead of the long break for Eid-ul-Fitr, the Indonesia stock market has moved higher in two of three trading days since the end of the two-day slide in which it had fallen more than 60 points or 0.8 percent. The Jakarta Composite Index now rests just beneath the 7,230-point plateau and it's likely to open under pressure as it catches up on misses sentiment.

The global forecast for the Asian markets is soft on concerns for the global economy and for the outlook for interest rates, with technology stocks particularly likely to slide. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The JCI finished modestly higher on April 28 following mixed performances from the financials, cement companies and resource stocks.

For the day, the index gained 32.15 points or 0.45 percent to finish at 7,228.91 after trading between 7,204.60 and 7,267.11.

Among the actives, Bank Danamon Indonesia dropped 0.81 percent, while Bank CIMB Niaga jumped 2.40 percent, Bank Negara Indonesia slumped 2.38 percent, Bank Central Asia dropped 0.91 percent, Bank Mandiri skyrocketed 8.81 percent, Bank Rakyat Indonesia collected 0.41 percent, Indosat tumbled 1.75 percent, Indocement rose 0.48 percent, Semen Indonesia skidded 1.16 percent, Indofood Suskes sank 0.79 percent, United Tractors spiked 4.76 percent, Astra International surged 6.32 percent, Energi Mega Persada accelerated 3.66 percent, Bakrie Sumatera Plantations advanced 0.86 percent, Astra Agro Lestari tanked 2.91 percent, Aneka Tambang strengthened 1.56 percent, Vale Indonesia improved 1.74 percent, Timah lost 0.54 percent and Bumi Resources was unchanged.

The lead from Wall Street ends up negative as the major averages spent most of Friday bouncing back and forth across the unchanged line before finally settling in the red.

The Dow dropped 98.63 points or 0.30 percent to finish at 32,899.37, while the NASDAQ tumbled 173.04 points or 1.40 percent to end at 12,144.66 and the S&P 500 sank 23.53 points or 0.57 percent to close at 4,123.34. For the week, the NASDAQ slumped 1.5 percent and the Dow and the S&P both eased 0.2 percent.

The lower close on Wall Street followed the closely watched Labor Department report showing stronger than expected job growth in April.

With the report showing continued strength in the labor market, economists predicted the Federal Reserve will now continue with its plans to raise interest rates sharply over the coming months.

Worries about the outlook for interest rates may have weighed on Wall Street along with a continued increase in treasury yields.

Crude oil prices closed higher on Friday, and posted a weekly gain as well, amid worries about supply following the European Union's decision proposing some of its toughest measures yet against Russia. West Texas Intermediate Crude oil futures for June ended higher by $1.51 or 1.4 percent at $109.77 a barrel. WTI crude futures gained nearly 5 percent in the week.

Closer to home, Indonesia will release Q1 GDP figures and April numbers for consumer prices later today. GDP is expected to fall 0.89 percent on quarter and rise 5.0 percent on year after gaining 1.06 percent on quarter and 5.02 percent on year in the previous three months. Inflation is tipped to rise 0.84 percent on month and 3.36 percent on year after gathering 0.66 percent on month and 2.64 percent on year in March.

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