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The Jakarta Composite Index posted a solid increase in light trade on Friday to record its biggest weekly gain since mid-January.

The JCI rose 13.13 points, or 0.5 percent, to close the week at 2,578.8. The benchmark gained 1.2 percent on the week, its biggest gain since the week ended Jan. 15.

However, volume was light on Friday, as it was most of the week, as investors remained reluctant to take big positions because of the possible political fallout of the Bank Century investigation.

Some 3.9 billion shares worth Rp 2.3 trillion ($248.4 million) changed hands. Gainers outnumbered decliners 97 to 54.

“The market was quiet but some investors bought select stocks, mainly companies that are expected to announce profit growth in 2009,” said Cece Ridwanulloh, an analyst at PT Ekokapital Sekuritas.

Meanwhile, the rupiah advanced on speculation the central bank would gradually raise interest rates this year as an economic recovery takes hold, spurring demand for higher-yielding local assets.

The rupiah traded at 9,235 against the dollar as of the stock market’s close on Friday, compared with 9,275 on Thursday.

“We’re going to see Asian central banks start raising interest rates this year,” said Gundy Cahyadi, an economist at IDEAglobal in Singapore. “Rate hikes help boost currencies.” Yohanes Obor & Bloomberg