"But it is a little bit strange to me that other markets in the region did not make any strong rebound, as on an individual basis Indonesia should not be that attractive compared to others such as Japan or Thailand," he said.

"The only thing that might explain it is that foreign investors have sold too many Indonesia shares earlier and they have returned on the back of the Morgan Stanley recommendation," he added.

"I would say the market move is irrational. But given the big volume of trade, you have no choice but to follow the market, otherwise you miss the upside," a dealer at a local brokerage said.

He added that gainers were mostly stockswith overseas listings or dollar earners which had made solid rises this week on the back of weak rupiah.The Jakarta Stock Exchange composite index was up 25.069 points at 355.528. Turnover totalled 572.7 million shares worth 843 billion rupiah ($ 95.5 million). The Indonesian rupiah was trading at 8,725-8,825, off a low of 9,200 against the dollar, in late Thursday trade.

State telephone monopoly Telkom was up 175 rupiah to close at 2,450 rupiah, while satellite operator Indosat gained 1,325 rupiah at 11,000 rupiah.