Emerging-market stocks complete worst weekly loss
Sunday, 27 September 2009
JAKARTA, Sept. 26 (Bloomberg): Developing-nation equities capped their steepest weekly decline in more than two months on mounting concern that a rally has outpaced economic growth after an unexpected drop in US home sales and factory orders.
The MSCI Emerging Markets Index was little changed today, slipping 6 points to 908.07. It fell 1.2 per cent in the past five days, the biggest weekly drop since July 10. PT Bank Central Asia, Indonesia's largest lender by market value, sank 4.7 per cent today, leading the benchmark Jakarta Composite Index down 1 per cent. The Shanghai Composite Index fell 0.5 per cent as investors speculated rising stock supply will divert funds from existing equities. Turkey's main shares index lost 0.7 per cent.
The 22-nation global emerging-market gauge trades at 20.4 times reported earnings, above its five-year average of 13.5 times, after surging 60 per cent this year as governments cut interest rates and introduced economic stimulus measures.
"I think a correction for the market has been overdue for quite some time," Marc Faber, the publisher of the Gloom, Boom & Doom report, said today in an interview on Bloomberg Television. "The economy, through fiscal stimulus and money printing, has stabilized but hasn't improved, and considering the stimulus it's actually very disappointing performance."
Existing-home purchases in the US dropped 2.7 per cent in August to an annual rate of 5.1 million, the National Association of Realtors said yesterday in Washington, compared with analysts projections for an increase to 5.35 million.
The MSCI Emerging Markets Index was little changed today, slipping 6 points to 908.07. It fell 1.2 per cent in the past five days, the biggest weekly drop since July 10. PT Bank Central Asia, Indonesia's largest lender by market value, sank 4.7 per cent today, leading the benchmark Jakarta Composite Index down 1 per cent. The Shanghai Composite Index fell 0.5 per cent as investors speculated rising stock supply will divert funds from existing equities. Turkey's main shares index lost 0.7 per cent.
The 22-nation global emerging-market gauge trades at 20.4 times reported earnings, above its five-year average of 13.5 times, after surging 60 per cent this year as governments cut interest rates and introduced economic stimulus measures.
"I think a correction for the market has been overdue for quite some time," Marc Faber, the publisher of the Gloom, Boom & Doom report, said today in an interview on Bloomberg Television. "The economy, through fiscal stimulus and money printing, has stabilized but hasn't improved, and considering the stimulus it's actually very disappointing performance."
Existing-home purchases in the US dropped 2.7 per cent in August to an annual rate of 5.1 million, the National Association of Realtors said yesterday in Washington, compared with analysts projections for an increase to 5.35 million.