Head of Research of Valbury Asia Securities Alfiansyah said here Tuesday the JCI has extended gain on positive domestic sentiment.
The index of the Indonesian Stock Exchange (BEI) rose 2.59 points or 0.05 percent to 5,249.08 points with index of 45 most liquid stocks up 0.07 percent to 893.37 points.
"Increase in the countrys foreign exchange reserve gave positive sentiment to the domestic market," Alfiansyah said.
The Indonesian foreign exchange reserves rose to US$111.2 billion by the end of August from US$110.5 billion a month earlier.
In addition, the Chinese economic data improved contributing to positive sentiment pushing up the JCI higher, he said.
PT Asjaya Indosurya Securities analyst Williams Surya Wijaya said the smooth process of transition from the administration of outgoing President Susilo Bambang Yudhoyono to a new government of president elect Joko Widodo gave stronger confidence to foreign investors in the countrys economic stability.
Joko Widodo will be installed on October 21 as new president of the country for the next five years.
"The JCI will likely continue to be on the increase under the favorable condition," William said.
Regional markets such as Hang Seng recorded a decline in index but Nikkei and Straits Times recorded an increase.
(AS)
Editor: Ella Syafputri
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