Emerging stocks fall to five-month low Emerging stocks fell to a five-month low after extending their decline from a September high to 10 per cent, as lower oil prices weighed on Russia. Indonesian shares slumped on concern a new parliamentary speaker will hurt President-elect Joko Widodo’s growth plans. Bloomberg News reported that OAO Gazprom, the world’s biggest natural gas producer, led the Micex Index to a seven-week low after Brent crude touched the lowest price since June 2012. The ruble fell below a central bank intervention zone. The Jakarta Composite Index tumbled 2.7 per cent as PT Astra International slid 5.7 per cent. Argentina’s Merval stock index sank after the resignation of the central bank’s head. The Ibovespa rose after plunging 7.6 per cent in the past three days. The MSCI Emerging Markets Index declined 0.5 per cent to 991.73 at 1:39 p.m. in New York, after falling as much as 989.13 and entering a correction from a three-year high reached Sept. 3. The Standard & Poor’s 500 Index slipped for a fourth day, the longest stretch this year, as the Federal Reserve held its course to end a bond-buying program. European shares tumbled on concern central-bank stimulus will fail to revive the economy. “For now the negative drivers remain in place, so EM should continue to be under pressure,” Maarten-Jan Bakkum, an emerging-market strategist at ING Groep NV in The Hague, said by phone. “Oil weakness is the main reason for drops in Russian equities.” The developing-nation gauge, which sank 7.6 per cent in September, has fallen 1.3 per cent in 2014 and trades at 10.6 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index is little changed in the period and is valued at a multiple of 14.4. The Micex dropped 1.7 per cent in its second day of declines, as Gazprom and OAO Novatek fell at least 1.8 per cent. Russia receives about half its budget revenue from oil and natural gas. ift.tt/1rBldjG ift.tt/1ls1hrf [[Boost your social presence with NAIRALIKES nairalikes ]] #nigeria x #nairalikes #vanguardng
Posted on: Thu, 02 Oct 2014 23:06:08 +0000
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