Jakarta (ANTARA News) - Indonesian share prices closed higher on Wednesday on investors confident that the countrys economic fundamentals is "positive", analysts said.

The composite share price index of the Indonesian Stock Exchange (BEI) rose 25.15 points or 0.44 percent to 5,676 points with the index of 45 most liquid stocks up 2.94 points or 0.31 percent to 943.81 points.

Analyst of Asjaya Indosurya Securities William Surya Wijaya said investors confidence in the countrys economic fundamentals was one of the factors triggering share buying mainly by domestic investors.

"The BEI index is still potential to climb higher amid optimism that the countrys economic condition would continue to improve. The situation could lead to lift the index to a new record high," William said.

He said foreign investors also have returned to the market contributing to the increase in the index.

Based on data at BEI, buying by foreign investors resulted in a foreign net buy of Rp316.37 billion on Wednesday

Vice President of Research and Analysis of Valbury Asia Securities Nico Omer Jonckheere said improved economy would open greater possibility for Indonesia to earn the investment grade by Standard & Poors (S&P).

"Indonesia deserves the rating of investment grade from S&P, as the non performing credit ratio has steadily improve," he said.

Two other international rating agencies Moodys Investors Service and Fitch Ratings already granted the investment grade for Indonesia.

Wednesdays trading recorded 388,237 transactions with 17.54 billion shares worth Rp7.91 trillion changing hands.

Regional markets such as Nikkei and Hang Seng recorded gain with Straits Times losing .(*)

Editor: Heru Purwanto
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