REPUBLIKA.CO.ID, JAKARTA -- Foreign investors have greater confidence in the Indonesian stock market after better than expected data of the country's economy in the second quarter of this year, analysts said.

"Foreign funds have continued to flow into the domestic market indicating greater confidence in our economy," market analyst William Surya Wijaya from Asjaya Indosurya Securities said here on Monday.

The country's economy grew 5.18 percent in the second quarter of this year overshooting the targets set by Bank Indonesia and a number of analysts.

The Q2 growth surged from 4.92 percent in the Q1 and brought the country's economic growth rate to 5.01 percent in first half of the year.

Meanwhile, the Indonesian Stock Exchange (BEI) recorded Rp33.19 trillion in total foreign net buy from early this year until Monday.

William said the economic data is expected to keep the rising trend of the BEI index (IHSG).

Based on the BEI data, the IHSG rose 18.85 percent year to date or 865.97 points to 5,458.98 points so far this year.

The IHSG year to date growth was higher than indices recorded by most stock markets in the world.

The Philippines recorded a growth of only 14.98 percent, Britain's market 8.99 percent, India 7.91 percent, Australia 5.26 percent, the USDow Jones 5.34 percent, South Korea's KOSPI 3.56 percent and Hong Kong's Hang Seng 2.65 percent.

IHSG growth was lower only than that of Thai index of 19.74 percent.

The rising trend of IHSG helped push up the market capitalization in the domestic market to the level of Rp5,879.82 trillion by 8 August 2016.

The BEI's President Director Tito Sulistio has said he was optimistic the market capitalization would cross the level of Rp6,000 trillion in 2016 with growing number of companies launching Initial Public Offering (IPO).

"Currently seven companies are in the process of launching IPO. If the process run smoothly the market capitalization of our capital market would exceed Rp6,000 trillion," he said.

Market capitalization is the value of securities listed on the stock market.

The Jakarta composite index closed 0.71 percent higher on Monday driven by positive sentiment of the country's economic growth in the second quarter of this year.

On Monday, the IHSG rose 38.73 points closing at 5,458.97 with index of 45 most liquid stocks up 0.92 percent to 940.76.

The data of the country's economic growth still was still main sentiment in trade in the first trading day of this week, analysts said.

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