The index of the Indonesian Stock Exchange (BEI) rose 61.01 points or 1.25 percent to 4,946.09 points with the index of 45 most liquid stocks up 1.75 percent to 837.99 points.
"After staying out for some time, foreign investors returned to the market and bought shares," Asjaya Indosurya Securities analyst William Surya Wijaya said.
Data at the BEI showed the market closed on Tuesday with a foreign net buy of Rp270.721 billion.
William Surya Wijaya said the return of foreign investors to the market indicated that the domestic shares are still interesting.
"However, the market needs more sentiments such as data of improved economic performance to maintain the trend," he said.
HD Capital analyst Yuganur Wijanarko said the market players began to buy shares resulting in an increase in share prices to follow the regional trend.
Yuganur said worry over possible increase in the benchmark interest rate of Bank Indonesia (BI rate) has dissipated.
The trade on Tuesday recorded 204,175 transactions with 2.51 billion shares worth Rp3.59 trillion changing hands.
Gainers outnumbered decliners by 220 to 87 shares with 97 shares remaining flat.
Regional markets such as Hang Seng recorded an increase in index with Nikkei and Straits Times declining.(*)
Editor: Heru Purwanto
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