With Ukraine conflict subsiding, recovery of global economy would be faster."
Jakarta (ANTARA News) - Jakarta composite index (JCI) closed higher on Monday on foreign investors beginning buying shares at the domestic market.

The index of the Indonesian Stock Exchange (BEI) rose 59.47 points or 1.18 percent to 5,113.23 points and the index of 45 most liquid stocks increased 1.57 percent to 875.42 points.

Asjaya Indosurya Securities analyst William Surya Wijaya said foreign investors began to enter the domestic market buying shares.

The inflows of foreign fund to the domestic market pushed up the JCI, and resulted in a foreign net buy of Rp409.58 billion on Monday.

William said the regional markets that recorded an increase in index also encourage investors to buy shares on the domestic market contributing to the JCI increase.

The JCI increase, however, was more on technical factors that the market was still in the process of consolidation, therefore, the was still potential pressure.

"However, for long term investors the time provided a good opportunity to buy large shares," William said.

There were 175,131 transactions in Monday trade with 3.36 billion shares valued at Rp3.82 trillion changing hands.

Gainers outnumbered decliners by 215 to 101 shares with 89 shares flat.

Regional markets such as Hang Seng, Nikkei and Straits Times recorded an increase in index.

Meanwhile, rupiah regained some of its losses against the US dollar closing at the level of 11,679 per dollar strengthening from earlier level of 11,778 per dollar.

Chief researcher of Monex Investindo Futures Ariston Tjendra said political sentiment related to presidential election began to clam down encouraging investors to enter the domestic financial market.

Rupiah value rose to a record high in the past two weeks, he said.

Market players also began to show optimism that the process of transition to new government would be smooth and investment woiuld be safe, he said.

External sentiment also is positive with tension over Ukraine conflict began to subside pushing up demand for risky currencies including rupiah, he said.

"With Ukraine conflict subsiding, recovery of global economy would be faster," he said.

Chief researcher of Trust Securities Reza Priyambada said increase in Indonesias foreign exchange reserve to US$110.54 billion by the end of July from US$107 billion in May also contributed to the rupiah strengthening .

The increase in the foreign exchange reserve would help strengthen the countrys economic resilience against global instability and gives the central bank greater strength to protect rupiah, Reza said.
(Uu.H-ASG/H-YH)

Editor: Priyambodo RH
Copyright © ANTARA 2014