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akarta stocks rose 3.25 percent Thursday, propelling the benchmark composite index to its highest level in more than a year as encouraging first-half corporate earnings buoyed the market with positive sentiment.

The index gained 72.32 points to close at 2,298, which Bloomberg said was the highest since July 31, 2008, after several companies reported first-half earnings that exceeded analysts' estimates.

Alfatih, from BNI Securities, confirmed the jump in the index was because of the market's confidence, buoyed by the financial results of those companies.

"This shows that everything is on the right track," he said.

Among the companies that showed good performance was Bank Mandiri, the country's largest lender by assets. It booked first-half net profits of Rp 2.9 trillion (US$292.9 million), or an increase of 12.1 percent as lending rose.

Its competitor, Bank Central Asia (BCA), saw net profit rise 35.9 percent to Rp 3.3 trillion, also supported by an increase in borrowing.

The country's second-largest cement producer, PT Indocement Tunggal Perkasa, saw net profits jump 51.8 percent to Rp 1.17 trillion on the back of lower costs.

CIMB-GK securities president director Berhard Thien said the rise in the index was also supported by a correction in the local currency rate and rising commodity prices.

The rupiah traded at 9,955 per dollar as of 4:58 p.m. in Jakarta, the same level as Wednesday.

Besides shares in the financial sector, mining companies also contributed to the rise in the index on Thursday, as commodity prices started to pick up on expectation of demand increasing in line with a recovery in the global economy.

The shares of the country's biggest coal producer, PT Bumi Resources, soared 13 percent to close at Rp 2,425 a share on news that its unit may raise its convertible offer to $375 million from a previous $200 million.

However, concerns that this increase would only be short-lived were rife, with some pointing out the jump was too extreme and too quick.

The recent financial report filed by Indonesian bellwether PT Astra International and the country's largest nickel producer, PT International Nickel Indonesia (Inco), give weight to those concerns.

Astra's first-half net profits dropped by 12.5 percent to Rp 4.2 trillion this year, while Inco's second-quarter net profit plunged 89 percent on the back of lower prices and sales.

Still, as the economy continues to improve and the central bank prepares another expected rate cut on the back of continued benign inflation, Alfatih said the index may reach 2,350 in the near future.