The index of the Indonesian Stock Exchange (BEI) rose 34.4 points or 0.67 percent to 5,133.93 points with index of 45 most liquid stocks up 0.97 percent to 885.70 points.
Analyst of HD Capital Yuganur Wijanarko said the sentiment of tax amnesty law still was a factor driving investors to buy shares resulting in an increase in the BEI index.
"Purchases of big capitalization shares and second layer shares after the tax amnesty law have lifted the BEI index to cross the psychological level of 5,100 points, Yuganur said.
However, he warned that the continued rise in the BEI index has resulted in market saturation .
Investors should restrain from buying more share pending consolidation or correction when purchase should begin again, he said.
Analyst of Asjaya Indosurya Securities William Surya Wijaya said continued inflows of foreign capital also contributed to sustaining increase in BEI index.
Based on data at BEI, "foreign net buy" was recorded at Rp864.48 billion in trade on Wednesday .
"However, investors should always remember that any increase in the index opens a possibility of correction," William said.
Trade on Wednesday recorded 376,777 transactions with 7.34 billion shares valued at Rp7.65 trillion changing hands.
Gainers outnumbered decliners by 169 to 113 with 109 shares stagnant.
Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in index.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
