The index of the Indonesian Stock Exchange (BEI) rose 63.84 points or 1.17 percent from earlier level. The index of 45 most liquid stocks followed up strongly by 1.51 percent to a record level of 960.78 points.
"The BEI index rose on foreign investors entering the market again buying shares," chief researcher of NH Korindo Securities Indonesia Reza Priyambada said.
Reza said the JCI rise was also attributable to rupiah regaining part of its lost value against the US dollar. The national currency closed at the level of 12,927 per dollar gaining from its weakest level of more than 13,000 per dollar on Thursday.
Investors recorded a net buy of Rp165.759 billion in Fridays trading .
Reza said data from Bank Indonesia about foreign exchange reserve that increased by the end of February in 2015 added to the positive sentiment on the domestic market.
Indonesia recorded Rp115.5 billion in foreign exchange reserves by the end of February 2015 or an increase of US$1.3 billion from US$114.2 billion a month earlier .
Meanwhile, president director of BEI Ito Warsito said the inflows of foreign fund into the domestic market reflects investorss confidence in the countrys economy.
"Foreign investors have continued to invest in secondary market since early January, 2015," Ito Warsito noted.
Share trade transactions were recorded at 221,540 times on Friday with 4.42 billion shares worth Rp5.64 trillion changing hands.
Gainmers outnumbered decliners by 161 shares to 132 shares with 113 shares flat.
Regional markets such as Hang Seng recorded a decline in index but Nikkei and Straits Times gained.
Meanwhile rupiah gained to the level of 12,927 per dollar from earlier level of 12,975 . During Thursday trade the currency fell in value to more than 13,000 per dollar.
Analyst from PT Platon Niaga Berjangka Lukman Leong said increase in the countrys foreign exchange reserves in February contributed to the rupiah regaining some of its lost value.
In addition Bank Indonesia continued market intervention to prop up and prevent rupiah from losing more value.
However, Lukman Leong warned against the impact of the Fed planning to raise its fund rate.
Investors are watching and awaiting the result of the Federal Open Market Committee (FOMC) next week.
"The Fed is expected to raise its fund rate in the middle of this year," he said. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
