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hare prices on the Indonesia Stock Exchange (IDX) rebounded to above the 3,600-psychological mark after the longest losing streak since the Greek debt crisis in May, as regional markets gained ground in the easing of tensions on the Korean Peninsula.

The benchmark stock index, the Jakarta Composite Index (JCI), ended the day at 3,637.45 Tuesday, up 1.92 percent, or 68 points on the back of the surge in blue-chip shares.

Foreign investors bought Rp 1.3 trillion worth of stocks and sold Rp 1.15 trillion of them, leaving net foreign purchases at Rp 156 billion. About Rp 3.5 trillion of foreign funds flew out of the country in the week from Dec. 9 to 20, resulting in the longest losing streak since May of this year from Dec. 9 to 16.

“The JCI slowly rebounded Tuesday after a relatively deep downfall on the previous days. Regional bourses gained this afternoon as concerns over tension on the Korean Peninsula have eased,” the IDX said in a statement Tuesday.

Nearly 2.89 billion shares changed hands in Tuesday’s trading, with value of transactions reaching Rp 4.19 trillion. Blue-chip stocks were the most active shares traded throughout the day, as prices went down following the previous five-day losses.

The nation’s largest bank by lending, Bank Rakyat Indonesia (BRI), led Tuesday’s rally, with shares (BBRI) soaring by 3 percent, or 300 points, to Rp 10,300 apiece, contributing to 8.38 percent of the total index gain. Bank Mandiri, Bank Danamon and Bank Negara Indonesia were also among the index movers Tuesday.

Astra Internasional, the biggest automotive distributor and No. 1 listed company by market capitalization, gained 2.34 percent or 1,200 points to Rp 52,450 after plummeting to below Rp 50,000 on Dec. 16.

Meanwhile, the politically wired Bakrie Group’s crown jewel Bumi Resources, the nation’s largest coal producer, gained 3.42 percent, or 100 points, to Rp 3,025, contributing 3.8 percent to the index gain. Bumi director Dileep Srivastava said Tuesday that the firm targets to be debt-free by 2013, starting with US$1 billion debt payout next year, Reuters reported, spurring positive sentiment to the 11th biggest firm by market capitalization on the stock exchange.

The mining sector led Tuesday’s stock index gain, increasing by 3.07 percent, followed by the miscellaneous industry, consumer goods and finance sectors, which gained 2.31 percent, 2.9 percent and 2.06 percent, respectively.

Analysts previously said the stock index may close the year at the 3,800 level, but lowered their forecast following the recent loss to between 3,600 and 3,700.

Government bonds snapped a six-day decline and the rupiah recovered earlier losses. The rupiah stood at 9,043 per dollar as of 3:15 p.m. in Jakarta, the same level as Monday, according to data compiled by Bloomberg.

The currency dropped as much as 0.1 percent to approach 9,058. The yield on the 11 percent note due in November 2020 fell 12 basis points to 7.85 percent Tuesday, according to midday prices provided by the Inter-Dealer Market Association. The rate reached 7.02 percent on Oct. 14, the lowest level since the debt was sold in May 2005. (est)