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Indonesian stocks on Tuesday extended the previous day’s big rally and closed in on a two-year high as foreign investors continued to buy shares.

The Jakarta Composite Index rose 30.72 points, or 1.2 percent, to close at 2,657.17, its highest level since closing at 2,667 on Jan. 20. A close above that level would mark a two-year high.

Trade volume was robust. Some 3.6 billion shares worth Rp 3.9 trillion ($425.1 million) changed hands.

Gainers outnumbered decliners 105 to 74.

Santikno Suherman, a fund manager at PT Indo Premier Securities, said the gains over the past two days and the level of buying by foreign funds were signs that the JCI had begun an intermediate-term rally that could take it to 2,800 points within the next two months.

“Foreign investors have been more confident in local stocks,” he said, noting that overseas investors were net buyers by Rp 541 billion on Tuesday, partly because the greatest uncertainty surrounding the Bank Century bailout probe had passed.

Meanwhile, the rupiah weakened against the US dollar on Tuesday, retreating from a seven-week high on speculation that policy makers would intervene to curb its appreciation because of fears that it might hurt exports. The rupiah traded at 9,196 as of the stock market’s close on Tuesday, compared with 9,185 on Monday.