Emerging Stocks Decline for Third Day as Thai Tensions Escalate Emerging stocks fell, dragging the benchmark index to a three-week low, as anti-government protests dragged down Thai shares and South Korea’s biggest financial company posted a jump in bad loans. The baht weakened. Airports of Thailand Pcl, which operates the international airport in Bangkok, declined for a fourth day. Woori Finance Holdings Co. (053000), South Korea’s largest financial firm by assets, dropped for a fourth day after loan-loss provisions more than doubled from a year earlier. Chinese property developers slid after a front-page editorial in a state-owned publication said the real estate sector posed a danger to the economy. The MSCI Emerging Markets Index fell 0.2 percent to 1,026.01 as of 2:07 p.m. in Hong Kong, a third day of losses. The baht dropped the most in a month as the opposition Democrat party led a street rally in Bangkok to protest against the government’s plan to pass a blanket amnesty bill for people charged with offenses during past political clashes. “Most investors stopped any new investments in Thai equities to assess the situation and development of anti-government demonstrations,” Jitra Amornthum, head of research at Finansia Syrus Securities in Bangkok, said by phone. Thailand’s SET Index slumped 2.2 percent, the most among Asian benchmark indexes, and the nation’s currency weakened 0.3 percent to 31.288 per dollar, the lowest level since Oct. 2. Global funds sold $323 million more Thai bonds than they bought last week and pulled a net $91 million from equities, official data show. Airports of Thailand slid 5.6 percent, the most since Sept. 24 and paring its annual advance to 100 percent. Stock Valuations All 10 industry groups in MSCI’s emerging markets index slid, led by consumer discretionary shares and material producers. The measure trades at 10.5 times projected earnings for the next 12 months, compared with 14.3 for the MSCI World Index of developed countries. Indonesia’s Jakarta Composite Index dropped for a third consecutive day. South Korea’s Kospi lost 0.6 percent. Woori Finance slid 0.4 percent after third-quarter income trailed estimates. Other South Korean lenders retreated. Shinhan Financial Group Co. dropped 3.1 percent and KB Financial Group Inc. declined 2.2 percent. The Hang Seng China Enterprises Index added 0.2 percent while the Shanghai Composite Index (SHCOMP) declined 0.1 percent. China Vanke Co. (000002), the nation’s largest listed developer by market value, dropped 1.7 percent in Shenzhen. Poly Real Estate Group Co. fell 1.1 percent, halting three days of gains. A real-estate bubble is endangering the economy, the Securities Journal reported today. The nation’s top party officials will meet in Beijing from Nov. 9-12 to map out a blueprint for reforms as the economy grows at its slowest pace in more than two decades.
Posted on: Mon, 04 Nov 2013 13:18:16 +0000
Trending Topics
Recently Viewed Topics
© 2015