Most emerging-market stocks rose as Indonesian shares jumped after preliminary vote counts showed Joko Widodo leading the presidential race and Dubai extended its bull market rally. Russia’s ruble slipped before the U.S. imposed new sanctions linked to the Ukraine conflict.
PT Bank Central Asia (BBCA) led the Jakarta Composite Index to a 14-month high. Dubai’s gauge added 1.9 percent amid speculation Arabtec Holding Co.’s second-biggest shareholder plans to raise its stake. The Ibovespa dropped on concern that a four-day rally that pushed Brazilian stock valuations to the highest since November was excessive.
The MSCI Emerging Markets Index increased less than 0.1 percent to 1,066.83, with 422 stocks rising and 324 falling. The gauge advanced to a 16-month high yesterday, sending valuations to the most expensive since April 2011, as Federal Reserve Chair Janet Yellen told U.S. lawmakers the central bank must press ahead with its record monetary stimulus.
“Volatility is expected for overall emerging markets,” said Attila Vajda, managing director at Project Asia Research & Consulting Pte., an independent research and consulting firm based in Singapore. “Nevertheless, specific markets and some individual stocks are still very attractive.”
Seven out of 10 industry groups in the developing-nation gauge rose, led by health-care companies. A measure of technology shares, the best performer this year among industry groups, fell 0.8 percent today.
The DFM General Index in Dubai rallied 1.9 percent. It entered a bull market yesterday, surging 21 percent from a low on June 30. Aabar Investments PJSC plans to raise its stake in Arabtec to more than 30 percent from about 19 percent. Arabtec, the largest publicly traded builder in the United Arab Emirates, added 1.9 percent, taking its gain in the last five days to 20 percent.
The Borsa Istanbul 100 Index rose 1.3 percent, increasing for a fourth day. Hungary’s BUX Index climbed 0.1 percent, extending its gain in the last four days to 1.7 percent. The WIG30 index in Warsaw added 0.3 percent.
Brazil’s Ibovespa declined 0.5 percent, ending a four-day rally that pushed the benchmark gauge to the highest since Nov. 29.
The Micex Index fell 0.1 percent in Moscow, declining for a third day amid concern that Russia will face new sanctions tied to the conflict in Ukraine. After the close of trading, the U.S. imposed sanctions on large banks including OAO Gazprombank, energy companies including OAO Rosneft and individuals, according to an announcement by the Treasury Department.
The ruble depreciated 0.1 percent against the dollar, taking its four-day loss to 1.3 percent.
The emerging-markets gauge has risen 6.4 percent this year and trades at 11.1 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has gained 5.4 percent and is valued at a multiple of 15.1.
The Jakarta Composite Index (JCI) added 0.9 percent as Bank Central Asia jumped 2.2 percent to a record. The rupiah appreciated 0.3 percent, the second-best performance among 24 emerging-market currencies monitored by Bloomberg.
Widodo, known as Jokowi, had 52.8 percent of the 123.4 million votes counted as of 5:48 p.m. in Jakarta, with Prabowo Subianto on 47.2 percent, according to Kawalpemilu.org, a website that tracks actual results at polling stations that are uploaded to the General Elections Commission website. The official results are due by July 22.
Hon Hai Precision Industry Co. (2317) slid 3.2 percent from a 2007 high as Taiwan’s Taiex Index fell 0.9 percent.
The Shanghai Composite Index (SHCOMP) fell 0.2 percent as concern that new share sales will divert funds from existing equities offset data showing economic growth topped estimates and June home sales surged. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong ended a four-day gain.
South Korea’s won posted its largest two-day loss since Jan. 6. Equity gauges in Thailand and India rose at least 0.4 percent. The Philippine market was shut today because of Typhoon Rammasun.
The premium investors demand to own emerging-market debt over U.S. Treasuries increased one basis point to 265, according to JPMorgan Chase & Co. indexes.