27/10/2011 (Jakarta Globe) - Indonesian stocks overcame a grim opening to end up in positive territory for the third straight day on Wednesday amid expectations of good news from earnings results and hopes of a breakthrough in Europe’s debt crisis.

The Jakarta Composite Index gained 28.13 points, or 0.8 percent, to close at 3,738.61. Nearly 4 billion shares, worth Rp 4.71 trillion ($532 million), changed hands. Gainers outnumbered decliners 118 to 82. Foreign investors bought Rp 230 billion more in shares than they sold.

From its lowest point on Wednesday morning, the index climbed 1.3 percent.

“Earnings that have already been reported are mostly ahead of expectations,” said Mastono Ali, an analyst at CIMB Securities Indonesia.

He said further positive results were expected across multiple sectors despite worries over slowing global demand.

He added that the market anticipated positive results from a European Union summit regarding the region’s debt crisis. “It is shown in the positive openings in European markets and also improving Dow futures,” he said.

The summit scheduled for late on Wednesday was expected to result in a package to rescue Greece. The finance ministers’ meeting, however, was postponed from Wednesday, delaying the revelation on banking recapitalization plan.

Salim Ivomas Pratama, a cooking oil producer, rose 0.9 percent to Rp 1,170. BW Plantation, a crude palm oil producer, was up 0.8 percent to Rp 1,220. Palm oil futures in Malaysia rose by 2.2 percent for January delivery. Agribusiness was the highest-rising sector, up 1.4 percent.

Bank Mandiri, the nation’s largest bank by assets, gained 0.7 percent to Rp 6,850, while Bank Negara Indonesia closed up 1.3 percent to Rp 4,025. These two are among the largest banks in the nation yet to release quarterly financial statements. BNI plans to release its results on Thursday, with Bank Mandiri following a day later.

State-owned gas distributor Perusahaan Gas Negara rose 5.5 percent to Rp 2,900 after booking a Rp 4.7 trillion net profit.

The rupiah weakened 0.06 percent to trade at 8,870 to the US dollar on Wednesday.