Thai, Vietnamese shares fall, Indonesia closes out worst week in two years

|By:, SA News Editor

Stocks in Jakarta pared gains late in the session to finish flat in a fitting end to the worst week for Indonesian equities (IDX, EIDO) in two years.

The JCI fell more than 8% and the rupiah lost 6.3% against the dollar on the week. The currency fell 2% Friday after the government said it plans to implement higher import taxes to help cope with a widening current account deficit. "The only credible way to arrest currency falls is through higher interest rates," one analyst tells FT, "at present, Indonesia’s official interest rate is negative in real terms."

Thai (THD) and Vietnamese (VNM) shares were the region's big decliners, falling 1% and 1.9% respectively while Philippine (EPHE) stocks rose 0.4% following a miserable session Thursday.

Shares were flat in Malaysia and Singapore.