REPUBLIKA.CO.ID, JAKARTA --Jakarta index closed stronger on Monday hitting a peak over the past month on heavy buying by foreign investors.

The index of the Indonesian Stock Exchange rose 135.8 points or 3.19 percent to 4,390 points with index of 45 most liquid stocks up 4.09 percent to 741.74 points.

PT Anugerah Sekurindo Indah's analyst Bertoni Rio said the heavy buying by foreign investors triggered a significant increase of the BEI index.

Bertoni said a number of macro economic indicators like inflation being under control, trade balance being in surplus, foreign exchange reserves rising and BI rate being maintained at 7.5 percent prompted foreign investors to enter the domestic market.

"Strengthening rupiah also contributing to the increase in the BEI index on Monday," Bertoni said.

In Monday's trading, foreign net buy reached Rp1.933 trillion.

He predicted the BEI index would continue to rise to the levels of 4,236-4,410 points.

"However, market players need to watch possible profit taking any time after the significant increase," he said.

In trade at the BEI on Monday , there were 307,691 transactions with 6.24 billion shares worth Rp7.95 trillion changing hands.

Gainers outnumbered decliners by 222 to 93 with 38 shares unchanged.

Regional markets such as Hang Seng recorded a 0.19 percent increase in index to 22,888.76 points, with Nikkei index up 0.20 percent to 15,912.06 points and that of Straits Times weakening 0.27 percent to 3,135.49 points.

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