The JCI was up by 14.68 points (0.31 percent) to 4,763.63 while the index of the 45 most liquid stocks (LQ45) increased by 3.75 points (0.47 percent) to 811.66.

Valbury Asia Securities head of research Alfiansyah said in Jakarta on Tuesday that the positive trend of external stock markets had encouraged domestic stock market players to take a buying position, leading to the appreciation of the JCI.

'€œThe US and European stock markets strengthened following speculation that the Chinese government would take measures to support its economic growth with a stimulus. Stocks in the Chinese stock market also recorded increases,'€ he said as quoted by Antara.

However, the analyst said domestic sentiment, along with potential declines in Indonesia'€™s foreign exchange reserves, could hold back the JCI from moving higher. This, he said, was because the domestic economy had experienced a slowdown and high inflation threats had continued to cast a shadow, having a negative impact on the rupiah'€™s potential.

Meanwhile, Universal Broker Indonesia head of research Satrio Utomo added that despite positive sentiment in regional stock markets, investors must stay vigilant because the rupiah still showed a weakening trend.

'€œInvestors should pay close attention to foreign investors who have tended to take stock selling actions during the past week. With the various sentiments, JCI is predicted to move within the range of 4,711 to 4,795 points,'€ said Satrio.

In regional markets, the Hang Seng Index strengthened by 344.58 points (1.41 percent) to 24,865.70; the Nikkei Index was up by 89.33 points (0.43 percent) to 20,898.02; and the Straits Times Index weakened by 12.02 points (0.41 percent) to 3,184.62. (ebf)

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