REPUBLIKA.CO.ID, JAKARTA - The Jakarta composite share price index extended gain closing 1.43 percent higher amid slump hitting the majority of markets in Asia. The index of the Indonesian Stock Exchange (BEI) rose 61.34 points to 4,275.68 points with index of 45 most liquid stocks up 1.95 percent to 713.77 points.

Trust Securities analyst Yusuf Nugraha said the majority of Asian markets being in negative area held the BEI index from rising higher .

"A number of stocks on the domestic market gained strength but the rise was curbed on condition in the region. The market players, therefore, tended to delay transactions," Yusuf said. 

In addition, the market players chose to await the result of the next meeting of Bank Indonesia leaders expected on Thursday.  "The market players are waiting for the decision of the central bank on its benchmark interest rate (BI rate)," he said. 

He predicted the BEI index would hover around 4,200-4,300 point on Wednesday. Sinarmas Sekuritas analyst Christandi Rheza Mihardja noted amid possible cut by the Fed of its financial stimulus, the BEI index rose unlike the previous trend.

"It seems Chinese and US inflation data being lower than expected have eased concern over possible short term increase in interest rate ," Christandi said. 

Trade on Tuesday at BRI recorded 145,590 transactions with 6.02 billion shares worth 6.17 trillion IDR changing hands. Regional markets such as Hang Seng recorded a 0.28 percent increase in index to 23,744.19 points with Nikkei-225 index down 0.25 percent to 15,611.31 points and that of Straits Times falling 1.03 percent to 3,081.72 points.

Meanwhile, rupiah regained some of its losses in value against the US dollar on expectation the Fed would delay its financial stimulus tapering until next year. The Fed had been widely expected to cut its bond buying programs this month resulting in the weakening of the currencies of the majority of developing countries including rupiah. 

In interbank transaction on Tuesday, rupiah traded at the level of 11,938 per dollar as against 11,976 earlier .

"Rupiah tended to gain with expectation that the tapering off would be delayed until next year," financial market analyst of Bank Mandiri Rully Arya Wisnubroto said. He predicted rupiah would move around the levels of 11,600--12,100 IDR per USD this week. 

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