REPUBLIKA.CO.ID, JAKARTA -- The Jakarta composite index opened higher on Tuesday on improved stability in the country, analysts said.

The index of the Indonesian Stock Exchange (BEI) rose 3.49 points or 0.08 percent to 4,206.29 points with index of 45 most liquid stocks up 0.13 percent to 700.46 points.

Kresna Securities' analyst Etta Rusdiana Putra said improved stability of rupiah at around 12,100-12,250 per US dollar provided a positive sentiment to the market.

The market players also believed Bank Indonesia would main its benchmark interest rate at 7.5 percent when the central bank leaders hold their monthly meeting on January 9, Etta said.

"The sentiment is expected to shore up the BEI index," she said.

External factor, however, remains to shadow the domestic sentiment, she said, adding the Fed's plan to trim its massive financial stimulus is potential to increase selling pressure in domestic market.

Samuel Sekuritas' analys Benedictus Agung said the slight increase in the BEI index followed the regional trend and limited correction in the bond market.

"A number of stocks after significant correction in the past two days of trading are expected to rebound such as mining, banking, agriculture and property stocks," Benedictus said.

Regional markets such as Hang Seng recorded a decline of 0.01 percent to 22,681.70 points with Nikkei index down 0.42 percent to 15,841.44 points and that of Straits Times gaining 0.02 percent to 3,124.39 points.

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