Jakarta composite index up on external factors

Jakarta (ANTARA News) - The Jakarta composite index (JCI) opened higher on Tuesday on positive external sentiment, analysts said.

The index of the Indonesian Stock Exchange rose 14.68 points or 0.31 percent to 4,763.63 points with index of 45 most liquid stocks up 0.47 percent to 811.66.

Head of Research of Valbury Asia Securities Alfiansyah said that positive external sentiment was one of the factors prompting investors to buy more shares that shored up the JCI .

"Gains recorded by the US and European stock markets after speculation that the Chinese government would announce stimulus to shore up its flagging economy. Chinese stock markets also recorded gain," Alfiansyah said.

However, domestic sentiment with declining foreign exchange reserve could curb the JCI from climbing higher .

Meanwhile, chief researcher of Universal Broker Indonesia Satrio Utomo said despite the positive regional sentiment, investors should restrain from buying shares as rupiah was still on the decline.

"In addition, foreign investors have tended to sell shares over the past week," he said.

Regional markets such as Hang Seng and Nikkei recorded gain but Straits Times fell.(*)