Jakarta stocks ended slightly higher on Tuesday, after being in near flat or negative territory much of the day, with news of an upward revision in the country's sovereign ratings having limited impact on market sentiment.
Fitch Ratings said it had raised its outlook on Indonesia's sovereign ratings to "positive" from "stable" to reflect diminished political uncertainty following presidential elections last month.
The Jakarta Composite Index closed 0.57 percent higher at a record finish of 861.318 points. Share turnover was heavy at around 1.9 trillion rupiah ($201 million).
Indonesia's stocks have rallied strongly in recent weeks partly on anticipation of upward revisions of the country's ratings, which could result in a lower risk premium and thus attract much-needed investments and help reduce the cost of external borrowings for the country's corporates.
"Other rating agencies may raise (Indonesia's) outlook, thus automatically it will lead to a more attractive evaluation and lower risk," said Arianto Reksoprodjo, market analyst at Trimegah Securities.
Fitch's upward revision came a day after Indonesia officially declared former general Susilo Bambang Yudhoyono the winner of the country's first direct presidential elections on September 20.
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