Jakarta share prices closed 1.8 percent higher on Thursday, with the main index extending its rally for a sixth straight day and finishing at a record high, dealers said. The Jakarta Stock Exchange composite index closed up 46.73 points at 2,638.21, surpassing its previous all-time high of 2,591.48.
Volume was 4.93 billion shares worth 6.1 trillion rupiah (672.18 million dollars). Gainers led losers 101 to 86, while 66 stocks were unchanged. The rupiah was trading at 9,065/9,075 to the dollar against 9,075/9,080 late Wednesday.
"It is unbelievable that people were not tempted to lock in profits before a long holiday," said Ratna Lim, an analyst with Mega Capital Indonesia. The market will be closed from Wednesday until Tuesday for Eid celebrations and for the week the main index rose 186.62 points or 7.6 percent.
She said investors would normally prefer to clear their positions before the holidays but they did not do this time because they believed that global markets will sustain their rally when Jakarta is closed.
Lim said the strong gains posted by other regional markets further fuelled such investor confidence. "So they just did not want to miss the rally. That's why investors increased their positions instead of reducing them," she said.
In line with the index rally, several big caps also closed at new highs. Index heavyweight Telkom gained 300 rupiah to 12,650, coal giant Bumi Resources rose 325 to 4,425, while rival Bukit Asam added 500 to 8,400 and nickel miner Inco rose 3,900 to 78,900. Astra International also finished at a fresh high, rising 300 to 22,500, and United Tractors added 150 to 7,500.