Jakarta shares finished higher on Wednesday as optimism ahead of the second round presidential election fueled the increase, but the close was well off the intraday high.
The composite index rose 0.8 percent to 815.49 points in very heavy trading with estimated turnover of 1.5 trillion rupiah ($164.84 million). "Despite the positive ending, profit taking started to kick in as the market has increased sharply in the past few days," Edwin Sinaga, a trader at Kuo Capital, told Reuters.
The Jakarta index has gained more than four percent since its close on Thursday, despite a powerful car bomb explosion that morning in front of the Australian embassy, killing nine people and wounding more than 130 others.
It was the third major bomb blast in the country over the past three years, and some analysts have suggested the market has discounted such events, which while discouraging to foreign direct investment do not directly impact on some listed Indonesian companies.
Profits of a number of leading firms rely on domestic consumption, while others produce basic commodities whose export markets are not affected by Indonesia's security situation. The bombing has also not been linked with the presidential run-off September 20. The campaign has run relatively smoothly, and both candidates are viewed as pro-business. Incumbent president Megawati Sukarnoputri faces her former chief security minister Susilo Bambang Yudhoyono for the country's top job. The ex-general is well ahead in recent polls.
Selected banking shares led the gain, with Indonesia's fourth largest bank, PT Bank Rakyat Indonesia Tbk, jumping nearly four percent to 2,000 rupiah.
The country's biggest lender, PT Bank Mandiri Tbk, finished 1.75 percent higher at 1,450 rupiah.
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