Jakarta (ANTARA News) - The composite index of the Indonesia Stock Exchange was up 3.44 percent at the close of trading on Wednesday following three days of sell-offs.
The IHSG was up 128.46 to 3,863.58. The index of the 45 blue chips (LQ45) was up 24.73 points or 3.74 percent to 685.25.
Reza Priyambada from Research Indosurya Asset Management said the value of shares were considered low and encouraged investors to take a buying position.
"The fall in three straight days caused the price of shares to drop very low prompting market players to start buying. The rising of the BEI index was also the result of a technical rebound," he said.
He said shares of all sectors traded at the BEI contributed to the rise of the IHSG to send it to a positive area.
He said the maintenance of the interest rate at 6.75 percent reflected the stability of the country`s macro-economic conditions and financial system to continue to support further economic expansion.
Panin Sekuritas analyst Purwomo Sartono said the rebound in the IHSG was also caused by a positive sentiment from regional stock exchanges following the decision of the Fed to maintain its low interest policy.
"The decision of the Fed has more or less successfully calmed the global financial market that has recently fluctuated due to the downgrade of the US debt rating," he said.
He said however that the BEI index was still volatile in the near future due to external factors.
On the other hand it had provided an opportunity for investors conduct short-term trade by taken the benefit of the rebound momentum.
Of the total shares trade that day 264 were up, 24 depressed and 47 unmoved.
The frequency of trade transactions was recorded at 182,583 with a volume of 6.987 billion shares worth Rp7.067 trillion.
Indonesia`s rupiah currency meanwhile appreciated on Wednesday by eight points to Rp8,532 against the US dollar.
"The stable domestic economic conditions have reduced pressure on the rupiah against the US dollar although the appreciation was still within a short range," analyst from Bank Saudara Tbk Rully Nova said.
