Peaceful parliamentary elections in Indonesia helped propel Jakarta stocks to their highest close in four weeks on Tuesday, with more gains expected.
Dealers said the rise also reflected gains in the United States and regional markets on Monday when the Jakarta bourse was closed for the election, a legal holiday.
The composite index rose 20.9 points or 2.78 percent, its biggest daily percentage gain in two months, ending at 771.55 points. Turnover was a heavy 1.8 trillion rupiah ($210 million).
Gainers outnumbered losers 94 to 33 while 72 issues were unchanged.
Dealers said the early results indicated there would be little change in government policy.
The elections for the 550-seat parliament and local legislatures went off largely peacefully, although vote counting has been excruciatingly slow.
The result will shape the race for the country's first direct presidential election in July.
Dealers anticipate that the secular nationalist parties Golkar, once the party of ousted strongman Suharto, and President Megawati Sukarnoputri's party, to emerge as the main winners.
Most blue chips rose, led by telecom bellwether PT Telekomunikasi Indonesia Tbk (Telkom), which jumped 4.79 percent to end at 7,650 rupiah. Telkom was the most active stock in terms of value.
Dealers said sentiment on Telkom remained strong following an increase in domestic phone tariffs starting this month which will boost the company's earnings. Banking stocks were active and gained partly on expectations that interest rates would continue to fall, seen as positive for the sector due to the lower cost of funds.
The country's fourth largest bank, PT Bank Rakyat Indonesia Tbk, jumped 7.69 percent to end at 1,750 rupiah.
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