Investors tended to buy shares with big capitalization on Wednesday."Jakarta (ANTARA News) - Jakarta index gained on Wednesday closing 43.7 percent higher at 4.218.45 points despite selling actions by foreign investors.
The 45 most liquid stocks also rose 1.31 percent to close at 696.15 points.
"Some market players found the condition ripe for accumulating shares," Evergreen Capital`s director Rudi Utomo said.
Net sales at the Indonesian Stock Exchange on Wednesday were valued at Rp895.545 billion.
Rudi said the government`s call on a number of financial institutions to take part in shoring up the market, helped the BEI index resist the pressure.
"Investors tended to buy shares with big capitalization on Wednesday," he noted.
Trade at BEI on Wednesday recorded 176,853 transactions with 5.146 billion shares valued at Rp5.67 trillion changing hands.
Gainers outnumbered decliners by 177 to 102 with 81 shares remaining unchanged.
Regional markets such as Hang Seng recorded a decline of 0.69 percent in index to 21,817.73 points with Nikkei-225 index up 0.21 percent to 13,424.33 points and that of Straits Times down 0.57 percent to 3,111.80 points
Meanwhile, the national currency rupiah continued to be on the decline inching closer to a new psychological level of 11,000 per dollar.
The currency lost more value to close at 10,945 on Wednesday from 10,730 per dollar.
Harry Sudi, the chief analyst of PT Bahana Securities, attributed the rupiah fall to expectation that the Fed would stop its financial stimulus.
The government is expected to be more serious in addressing the the problem with the country`s current account deficit, he said.
The country`s current account deficit swelled from US$5.8 billion in the first quarter to US$9.8 billion in the second quarter of the year piling up pressure on rupiah.
He said company having debt in US dollar would be among the hardest hit by the rupiah fall, Harry said.
Samuel Sekuritas` economist Lana Soelistianingsih said rupiah is feared to continue to dive deeper.
Lana, however, believed the rupiah has almost hit the rock bottom from which it would rebound.
"Around 65 percent of analyses say The Fed would start cutting its financial stimulus from US$85 billion to US$75 billion per month," she said. ***3***
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Editor: Priyambodo RH
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