The index of the Indonesian Stock Exchange (BEI) rose 48.53 points to 5,102.46 points with index of 45 most liquid stocks up 1.07 percent to 876.58 points.
"The JCI gains to cross the level of 5,100 points amid the euphoria of the subsidized BBM price hike," Asjaya Indosurya Securities analyst William Suryawijaya said.
He said after the BBM price hike, the market would watch development of productive sectors such as infrastructure , improvement of public health and education and agricultural development as pledged by the new government.
The government has pledged to appropriate the subsidy cut from fuels to development of productive sectors.
Meanwhile, continued inflows of foreign funds into the domestic market added to the positive sentiment pushing up JCI, William said.
Trade on Tuesday was marked with a foreign net buy of Rp243.675 billion.
Technically the BBM price hike euphoria is expected to drive the JCI out of the phase of consolidation to extend gain, he said.
HD Capitals analyst Yuganur Wijanarko said some of the market players believed that the BBM price hike was not maximum to open room for further rise for JCI next year.
"Some market players had expected the government raise the price of subsidized BBM by Rp3,000 per liters. The fact could curb an increase in index," he said.
The government raise the prices of subsidized gasoline and automotive diesel oil only by Rp2,000 per liters.
Share transaction totaled 249,678 times on Tuesday with 6.31 billion shares worth Rp5.33 trillion changing hands.
Regional markets such as Hang Seng recorded a decline in index but Nikkei and Straits Times gained (*)
Editor: Heru Purwanto
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