Jakarta index extends gain, rupiah falls

Jakarta (ANTARA News) - The Jakarta composite index (JCI) extended gains closing higher on Thursday on continued inflows of foreign funds into the domestic market, analysts said.

The index of the Indonesian Stock Exchange (BEI) rose 6.314 points or 0.12 percent to 5,451.42 points but the index of 45 most liquid stocks fell 0.07 percent to 950.21 points.

Asjaya Indosurya Securities analysts William Suryawijaya said the market players still have high confidence in Indonesias economy resulting in the JCI to climb higher.

The trade on Thursday recorded a foreign net buy of Rp1.244 trillion, William noted .

"The market players are still enthusiastic with the release of the Indonesian economic data on Tuesday. So far the expectation is good," he said

He said the government has reacted well and quickly to forestall the impact of the global economic slowdown that the countrys economy remain relatively stable.

The market players are encouraged by the expectation to buy shares, he said

HD Capitals analysts Yuganur Wijanarko, however, advised investors to wait until the share price fall to start buying .

"There would be correction after buying saturation," he said .

There were 246,298 transactions recorded in Thursdays trading with 4.27 billion shares valued at Rp5.10 trillion changing hands.

Gainer outnumbered decliners by 159 to 126 shares with 106 shares flat.

Regional markets such as Hang Seng and Nikkei recorded gain in index with Straits Times down .

Meanwhile, the Indonesian currency rupiah lost against the USD dollar in interbank transaction trading the level of 12,872 per US dollar from earlier level of 12,856 per dollar.

Chief researcher of NH Korindo Securities Indonesia Reza Priyambada said worries over the Greek debt problem remained despite the roll over agreement.

"Many market players are stillo worried over potential default shadowing creditors," Reza said.

Some market players in the country also began to worry possible increase in inflation in February .

They are also awaiting the release of data on trade balance for January. The data are to be released by the Central Bureau of Statistics early next week .

Chief researcher of Monex Investindo Futures Ariston Tjendra said the market players also were awaiting data on US and Canadian consumer price index to be released at the same time.

"Normally the exchange rates of risky currencies including rupiah would be under pressure if the consumer price index increased . In addition, the United States will also release weekly data on unemployment allowance claim and data on durable good order for January. Improvement is expected in the data ," Ariston said.

Meanwhile Bank Indonesia middle exchange rate on Thursday recorded rupiah gaining to the level of 12,862 per dollar from Wednesdays the level of 12,887.(*)