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Indonesia Market May Find Support At 5,400 Points

The Indonesia stock market has tracked to the downside now in three straight sessions, giving away more than 70 points or 1.6 percent along the way. The Jakarta Composite Index finished just below the 5,420-point plateau, although the market may stop the bleeding on Wednesday.

The global forecast for the Asian markets is rangebound, thanks to inconsistent economic data ad mixed corporate earnings news. The European and U.S. markets were mixed but little changed, and the Asian markets figure to follow that lead.

The JCI finished modestly lower on Tuesday following weakness from the financial shares and the resource stocks.

For the day, the index dipped 28.30 points or 0.52 percent to finish at 5,419.11 after trading between 5,397.73 and 5,448.45. Volume was 4.11 billion shares worth 4.44 trillion rupiah. There were 240 decliners and 83 gainers, with 87 stocks finishing unchanged.

Among the actives, Astra Agro Lestari dropped 1.89 percent, while Aneka Tambang lost 0.56 percent, Bank Central Asia shed 0.50 percent, Bank Negara Indonesia tumbled 1.39 percent, Bank Danamon Indonesia fell 0.49 percent, Bank Mandiri plunged 1.66 percent, Bumi Resources plummeted 2.44 percent and XL Axiata advanced 0.48 percent.

The lead from Wall Street provides little clarity as stocks turned in a lackluster performance on Tuesday. The major averages bounced back and forth across the unchanged line before eventually ending the session mixed.

Weakness among some tech stocks dragged the NASDAQ down by 10.96 points or 0.2 percent to 4,977.29, while the Dow added 59.66 points or 0.3 percent to 18,036.70 and the S&P 500 edged up 3.41 points or 0.2 percent to 2,095.84.

On the economic front, the Commerce Department reported that retail sales rebounded in March following three straight monthly declines, although the increase fell short of estimates. Also, the Labor Department said that producer prices rose for the first time in five months in March - in line with estimates.

Traders were also digesting earnings news from some big-name companies, including JP Morgan (JPM), Wells Fargo (WFC), and Johnson & Johnson (JNJ). While all three companies reported better than expected first quarter results, Johnson & Johnson lowered its full-year guidance due to the impact of the stronger dollar.

Closer to home, Indonesia will release March numbers for imports, exports and trade balance later today. Imports are expected to fall 15.3 percent on year after losing 16.24 percent in February. Exports are called lower by 14.9 percent after tumbling 16.02 percent in the previous month. The trade balance is expected to show a trade surplus of $589 million, down from $740 million a month earlier.

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