Indonesian share prices closed 0.56 percent higher on Tuesday to another record on gains in second and third liner stocks and select blue chips, dealers said. The Jakarta Stock Exchange composite index closed up 6.135 points at 1,099.913, off a high of 1,100.365. Volume was 2.58 billion shares worth 1.88 trillion rupiah (202.87 million dollars). Gainers led losers 105 to 50, while 75 stocks were unchanged. The rupiah traded at 9,215-9,220 to the dollar compared to Monday's 9,270-9,275.

"Judging from the gains in second and third liners, the rally was a bit irrational to me," Irvin Padmadiviria, a fund manager with PT Batavia Prosperindo Asset Management, said. He said a number of companies with poor fundamentals and even those which defaulted on coupon payments were among those which caught the eye of speculators.

"I guess this happened because both foreign and local fund managers have raised their allocations for stock investments," he said.

State telecom firm Telkom rose 25 rupiah at 4,650 rupiah, while long distance operator Indosat dropped 50 rupiah at 5,450.

Cigarette maker Gudang Garam was down 100 rupiah at 16,350 while rival Sampoerna rose 50 rupiah at 8,050.

Timber company Barito Pacific gained 90 rupiah at 1,270, while plantation firm London Sumatera rose 120 rupiah at 1,570.

Pharmaceutical company Kalbe Farma was up 90 rupiah at 880 while rival Dankos rose 40 rupiah at 950.

Copyright Agence France-Presse, 2005