19/05/2011 (Jakarta Globe) - The Jakarta Composite Index joined its regional peers in rising on Wednesday, taking advantage of rising commodity prices.

The JCI gained 40.98 points, or 1.1 percent, to close at 3,840.21. About 6.4 billion shares worth Rp 5.5 trillion ($643.5 million) changed hands, with gainers beating decliners 169 to 60.

“Regional markets boosted the JCI today. Commodity prices climbed after the dollar weakened due to declining US housing data during April that was announced on Tuesday,” said Praska Putrantyo, an analyst at Infovesta Utama.

The US Commerce Department reported on Tuesday that housing starts fell 10.6 percent year-on-year to 523,000 in April.

Perusahaan Perkebunan London Sumatra Indonesia, the nation’s second-largest listed plantation firm, rose 1.1 percent to Rp 2,400. Palm oil futures gained 1.5 percent to 3,305 ringgit ($1,090) per metric ton in Kuala Lumpur.

Cellular operator XL Axiata gained 1.5 percent to Rp 6,650. It rose after it was added to MSCI Inc.’s Global Standard Indexes. Changes to MSCI’s indexes can affect share prices as managers whose funds track the measures adjust their holdings.

Holcim Indonesia, the nation’s third-largest cement producer, rose 4.9 percent to Rp 2,125. Lydia Toisuta, an analyst at CIMB-GK Securities, wrote on Wednesday that it found “value” in the company. Though the stock lags behind its peers, she said, it had more potential in terms of margins and growth.

The rupiah strengthened 0.2 percent to trade at 8,557 to the US dollar as the market closed on Wednesday. Global funds added to holdings of Indonesia’s debt assets to benefit from higher yields. Overseas investors boosted holdings of government debt by 0.9 percent from the end of April to Rp 223.37 trillion as of May 12, according to official data.

“Most Asian currencies are stronger today, including the rupiah, driven by the stock markets,” said Lindawati Susanto, head of treasury at Bank Resona Perdania. “There is risk appetite in the market driven by confidence about growth in Asia. On the Indonesian front, the economy is doing well.”