By Laura Cochrane
Feb. 20 (Bloomberg) -- Emerging-market stocks fell, heading for the biggest weekly decline since November, as commodity prices dropped and concern deepened that East European banks may need to be rescued.
The MSCI Emerging Markets Index sank 2.8 percent to 506.87 at 9:30 a.m. in London, the lowest since Jan. 23, for a five-day decrease of 8.5 percent. Hungary’s OTP Bank Nyrt. led the decline with a 34 percent drop this week. OAO Mechel, Russia’s biggest miner of coal for steelmaking, lost 27 percent.
Crude oil fell as much as 2.7 percent today in New York, and copper slid 1.7 percent. Nickel, lead, zinc and aluminum also slipped as the global financial crisis weakens demand for commodities, hurting developing economies that are sustained by raw-materials exports. East European financial shares reached the lowest in 6 1/2 years on concern deteriorating earnings and weakened support from lenders will force them to seek international bailouts.
U.K. Prime Minister Gordon Brown yesterday said the Group of 20 nations and the European Bank of Reconstruction and Development should look at ways to help Eastern European countries tackle the financial crisis.
The Budapest Stock Exchange Index lost 4.5 percent today to the lowest in five years, Romania’s BET benchmark fell 4.8 percent, Poland’s WIG20 Index slumped 3.6 percent.
Anglo, Samsung
South Africa’s FTSE/JSE Africa All Share Index slid as much as 4.2 percent, the most in two months, led by Anglo American Plc’s 12 percent plunge. Anglo American, the mining company controlling the world’s biggest platinum producer, suspended dividends and share buybacks and said it will cut 19,000 jobs to retain cash after metal prices collapsed.
Turkey’s ISE National 100 Index tumbled as much as 3.1 percent after the central bank cut its key interest rate by 1.5 percentage points, three times more than economists expected.
Samsung Electronics Co., the world’s largest memory- chip maker, lost 2.7 percent in Seoul as semiconductor-equipment orders in North America fell to their lowest level since 1991. The stock led the nation’s main Kospi index to an 11-week low.
To contact the reporter on this story: Laura Cochrane in London at lcochrane3@bloomberg.net
Feb. 20 (Bloomberg) -- Emerging-market stocks fell, heading for the biggest weekly decline since November, as commodity prices dropped and concern deepened that East European banks may need to be rescued.
The MSCI Emerging Markets Index sank 2.8 percent to 506.87 at 9:30 a.m. in London, the lowest since Jan. 23, for a five-day decrease of 8.5 percent. Hungary’s OTP Bank Nyrt. led the decline with a 34 percent drop this week. OAO Mechel, Russia’s biggest miner of coal for steelmaking, lost 27 percent.
Crude oil fell as much as 2.7 percent today in New York, and copper slid 1.7 percent. Nickel, lead, zinc and aluminum also slipped as the global financial crisis weakens demand for commodities, hurting developing economies that are sustained by raw-materials exports. East European financial shares reached the lowest in 6 1/2 years on concern deteriorating earnings and weakened support from lenders will force them to seek international bailouts.
U.K. Prime Minister Gordon Brown yesterday said the Group of 20 nations and the European Bank of Reconstruction and Development should look at ways to help Eastern European countries tackle the financial crisis.
The Budapest Stock Exchange Index lost 4.5 percent today to the lowest in five years, Romania’s BET benchmark fell 4.8 percent, Poland’s WIG20 Index slumped 3.6 percent.
Anglo, Samsung
South Africa’s FTSE/JSE Africa All Share Index slid as much as 4.2 percent, the most in two months, led by Anglo American Plc’s 12 percent plunge. Anglo American, the mining company controlling the world’s biggest platinum producer, suspended dividends and share buybacks and said it will cut 19,000 jobs to retain cash after metal prices collapsed.
Turkey’s ISE National 100 Index tumbled as much as 3.1 percent after the central bank cut its key interest rate by 1.5 percentage points, three times more than economists expected.
Samsung Electronics Co., the world’s largest memory- chip maker, lost 2.7 percent in Seoul as semiconductor-equipment orders in North America fell to their lowest level since 1991. The stock led the nation’s main Kospi index to an 11-week low.
To contact the reporter on this story: Laura Cochrane in London at lcochrane3@bloomberg.net
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