YEREVAN, August 17. / ARKA /. Emerging-market stocks fell to the lowest level since October 2011, extending last week’s losses, and currencies slid as investors speculated that capital outflows will accelerate, Interfax reported citing Bloomberg. It said Russia’s ruble tumbled with oil prices.
The MSCI Emerging Markets Index lost 1 per cent to 854.81, according to Bloomberg. The gauge posted a fourth weekly drop, the longest stretch of weekly declines in two months, after China’s shock devaluation boosted bets that Asian nations will weaken their currencies.
A US manufacturing report due Monday may offer clues on the Federal Reserve’s timing for its first interest-rate increase since 2006, it said.
Investors pulled money from emerging-market equity funds for a fifth straight week, according to a report from EPFR Global. A Bloomberg gauge of 20 currencies slid 0.3 per cent to a record today after slumping for an eighth week.
The developing-nation stock index has fallen 11 per cent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has added 2.1 per cent and is valued at a multiple of 16.2.
All 10 industry groups in the emerging-market index fell, led by technology and energy companies.
Russia’s Micex Index retreated 0.5 per cent and the ruble weakened to a six-month low. -0
