Jakarta shares finished higher on Monday, helped by blue chips as investors started to selectively buy shares ahead of the second round presidential election next month, analysts said.
The Jakarta Composite Index finished 0.84 percent higher at 753.03 points in moderate trade, estimated at 564.83 billion rupiah ($61 million).
"Some investors are starting to selectively buy shares ahead of the second round presidential election. I think the market trend should be positive up until the election day," Bambang Setiadi, a portfolio manager at Sinarmas Sekuritas, told Reuters.
Indonesians will cast their vote in the run-off of the country's first ever direct presidential election on September 20, where incumbent president Megawati Sukarnoputri faces her former chief security minister for the country's top job.
The largest capitalised firm in the bourse, PT Telekomunikasi Indonesia Tbk led the gains as it rose by two percent to 7,550 rupiah, followed by the country's fourth largest bank, PT Bank Rakyat Indonesia Tbk, which was up by four percent to 1,725 rupiah.
"A technical rebound could continue. If the market managed to break the 755 level, it could resume the upward trend to 770 points," said Yuganur Wijanarko, an analyst at Danareksa Sekuritas.
The rupiah currency was being traded at 9,325/9,345 to the dollar late on Monday, weaker compared to late Friday levels of 9,295/9,325.
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