14/07/2011 (Jakarta Globe) - Indonesian stocks rebounded on Wednesday, halting a two-day slide, as commodity prices rose and a growing Chinese economy suggested continued demand for imported goods.

The Jakarta Composite Index advanced by 42.83 points, or 1.1 percent, to close at 3,980.85. More than 6.42 billion shares worth Rp 4 trillion ($468 million) were traded. Gainers beat decliners by 177 to 43.

Foreign investors sold Rp 19 billion more in shares than they bought, according to Indonesia Stock Exchange data.

China’s economy grew 9.5 percent in the second quarter from the same period last year, beating expectations of 9.4 percent growth. With the Chinese economy humming along, the expectation is that it could boost demand for commodities from Indonesia.

Prices for commodities such as gold and palm oil advanced as concerns eased about Europe’s debt crisis spreading.

“Regional markets and commodity prices advanced today, especially the gold price and China’s stocks, and that helped the market here,” said Deni Hamzah, an analyst at Corfina Capital.

Astra Agro Lestari, the largest listed plantation company, gained 0.9 percent to Rp 23,100. London Sumatra Plantation, a company affiliated with Indofood, rose 1.1 percent to Rp 2,325. Crude palm oil futures gained 2 percent for October delivery, increasing the companies’ revenue prospects.

Indika Energy, a mining and energy company, rose by 0.7 percent to Rp 3,700. The company expects coal production at its subsidiary Kideco Jaya Agung to increase by 6.5 percent this year to 31 million tons, Panin Sekuritas said in a note to clients on Wednesday.

Shares of Star Petrochem, which provides logistics for the chemical industry, began trading for the first time. The stock surged 35 percent to Rp 138.

The rupiah strengthened by 0.2 percent against the dollar, closing at 8,548 on Wednesday in Jakarta, as investors shifted their investments to assets such as gold. Spot gold maintained its 5 percent gain of the last seven sessions.

“When the gold price is high, the dollar will trade weaker,” Deni said.