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Indonesian Shares Set to Log Steep Weekly Decline

Indonesian stocks slipped 90 points, or 1.4%, to 6,502 on Friday morning deals, retreating for the third session and hitting their lowest in two weeks. An overnight drop on Wall Street weighed on sentiment amid a surge in oil prices, while the latest U.S. producer inflation data reinforced bets on an imminent Fed interest-rate hike. Locally, concerns over oil prices above USD 100 per barrel added pressure, as Indonesia is a net oil importer, potentially straining fiscal conditions. Still, losses were capped by fresh data showing retail sales grew for the first time in four months during July, helped by government measures aimed at cushioning households from high cost pressures. All major sectors slipped, dragged by healthcare, cyclicals, basic materials, and transport. Charoen Pokphand (-3.7%), Japfa Comfeed (-3.0%), and ESSA Industries (-2.9%) were among major laggards. For the week, local markets are heading for a sharp drop, down around 2% after advancing in the prior period.

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