12/04/2011 (Jakarta Post) - The Jakarta Composite Index posted a modest 0.1 percent gain on Monday, advancing for a fourth successive day on the back of rising sentiment.

“There were three positive sentiments that boosted the market today — rising commodity prices, especially nickel and palm oil, newly listed companies that attracted investors’ attention, and speculation that the central bank will keep its policy rate at 6.75 percent,” said Janson Nasrial, an analyst at Amcapital Indonesia.

The JCI rose 4.03 points to close at 3,745.84. About 4.4 billion shares worth Rp 4.9 trillion ($568.4 million) changed hands. Decliners beat gainers 108 to 92.

Perusahaan Perkebunan London Sumatra Indonesia, the nation’s second-largest listed plantation firm, rose 3.2 percent to Rp 2,425. June-delivery palm oil dropped as much as 0.6 percent before settling at 3,385 ringgit ($1,120) per ton in Kuala Lumpur.

Timah, Indonesia’s biggest tin producer, gained 2.6 percent to Rp 2,900. Futures of the metal rose 1.4 percent to $33,500 per ton in after-hours trading in London, extending a record high.

Sejahteraraya Anugrahjaya, a hospital operator, jumped 66.7 percent to Rp 200 on its trading debut after raising Rp 90 billion in an initial public offering last week to raise funds to build a health center. Analysts said the company has good prospects as demand in the health care sector is expected to rise in the long term.

The rupiah strengthened two points to 8,649 against the US dollar as of the market’s close on Monday. Policy makers were expected to continue tolerating appreciation as the government tries to manage inflation.

“Investors are expecting Bank Indonesia to keep its interest rate unchanged [today] and let the rupiah strengthen,” said Lindawati Susanto, head of foreign-exchange trading at Bank Resona Perdania.

“The prospect of faster growth this year, slower inflation last month and the [Standard & Poor’s] rating upgrade on Friday is also supporting the currency."