"Improved domestic economic data pushed up the BEI index again," analyst Purwoko Sartono said.
Jakarta (ANTARA News) - The Jakarta Composite share price index closed higher on Tuesday on an increase in the country`s foreign exchange reserve.

Indonesian foreign exchange reserves rose to 95.7 billion by the end of September from US$93 a month earlier.

The index of the Indonesian Stock Exchange (BEI) rose 75.55 points or 1.32 percent to 4,432 points with the index of 45 most liquid stocks up 1.62 percent to 743.25 points.

"Improved domestic economic data pushed up the BEI index again," Panin Sekuritas` analyst Purwoko Sartono said here on Tuesday.

The decision of Bank Indonesia to maintain its benchmark interest rate (BI Rate) at 7.25 percent also contributed to the rise in index, Purwoko said.

He said the BEI index rose after falling in early trading on fear of US default with standoff over raising the US borrowing limit.

There were 137,379 transactions in Tuesday trading at the BEI with 3.579 billion shares worth Rp4.463 trillion changing hands.

Gainers outnumbered decliners by 189 to 67 with 104 shares flat.

Regional markets such as Hang Seng recorded a 0.89 percent rise in index to 23,178.85 points with Nikkei-225 index up 0.30 percent to 13,894.61 points and that of Straits Times gaining 0.42 percent to 3,149.17 points.

Meanwhile rupiah extended gain against the US dollar on return of foreign capital into the country.

Rupiah closed at 11,174 per US dollar in interbank transaction on Tuesday gaining from the level of 11,205 earlier.

"Inflows of foreign capital also contributed to the rise in the rupiah value against the US dollar," financial market analyst of Bank Mandiri Rully Arya Wisnubroto said.

Rully said fear of the impact of US default, however, remains with the debt ceiling showdown .

"If no agreement until mid October on raising the debt ceiling the US government would face default," he said.

He said the Central bank`s decision to maintain the BI rate at 7.25 percent was in line with the market expectation.

He predicted the rupiah still has the potential to rise in value on Wednesday.(*)

Editor: Heru Purwanto
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