June 24 (Bloomberg) -- Emerging-market stocks rebounded from a two-week low as Russian shares rallied after President Vladimir Putin asked lawmakers to rescind approval to use force in Ukraine. Dubai’s benchmark plunged the most in 10 months.
The MSCI Emerging Markets Index added 0.4 percent to 1,046.63. It closed yesterday at the lowest since June 5. OAO Gazprom jumped 4.1 percent to an eight-month high, leading the Micex Index up 2.2 percent. Arabtec Holding Co. slumped 9.8 percent as Dubai’s DFM General Index slumped further into a bear market. Housing Development Finance Corp. led a 1.4 percent gain in Indian equities. The Ibovespa ended a two-day drop in Sao Paulo.
Putin’s call came after Pro-Russian rebels in eastern Ukraine called a cease-fire in fighting against government forces, matching a truce announced three days earlier by President Petro Poroshenko. Brent crude rose as an al-Qaeda offshoot consolidates its control over areas of Iraq, OPEC’s second-largest producer.
“Today is a reasonable day, recovering a bit from losses yesterday,” Maarten-Jan Bakkum, an emerging-markets strategist at ING Investment Management Co. in The Hague, said by e-mail. “The news of the cease-fire is positive for Russia and Poland.”
The Micex gained the most since June 2, while the ruble climbed 1.2 percent versus the dollar on optimism the rebel cease-fire in Ukraine will ease a crisis that’s left hundreds dead in the former Soviet republic. Putin asked the upper house of parliament to cancel approval granted March 1 to use force in Ukraine, Kremlin spokesman Dmitry Peskov said by phone today, confirming an Interfax report.
Yields on Ukrainian dollar bonds due in July 2017 tumbled 71 basis points to 8.41 percent. The UX Index in Kiev climbed 0.6 percent.
Dubai’s DFM General Index, which entered a bear market yesterday after it fell 20 percent from a peak in May, tumbled 6.7 percent in its third day of losses.
Arabtec plunged to the lowest level since January after the United Arab Emirates’ largest listed construction company said it dismissed a “limited” number of staff. The builder denied reports that hundreds of employees have been fired, according to statement posted on the stock market website today.
Most Brazilian stocks rose, pushing the Ibovespa to a 0.1 percent advance. Lender Banco do Bradesco SA contributed the most to the gain, increasing 1.6 percent.
Nine out of 10 industry groups in the MSCI Emerging Markets Index rose, led by utility and consumer discretionary stocks. Samsung Electronics Co., with a 4 percent weighting in the index, advanced 1.7 percent in Seoul.
The MSCI Emerging Markets Index has risen 4.4 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has gained 4.7 percent this year and is valued at a multiple of 15.1.
Brent crude for August settlement increased 34 cents, or 0.3 percent, to $114.46 a barrel. Iraqi forces have been battling the Sunni Islamic State in Iraq and the Levant for control of the Baiji refinery north of Baghdad for almost two weeks.
India’s S&P BSE Sensex index halted a four-day drop and the rupee appreciated 0.1 percent. Housing Development Finance, which has a 6.9 percent weighting in the index, added 2.8 percent. Gail India Ltd., which processes and distributes natural gas, was the biggest percentage gainer, rising 4.6 percent. Lower fuel costs may ease inflation in India, which buys about 80 percent of its crude from abroad.
The Hang Seng China Enterprises Index of mainland companies listed on Hong Kong added 0.5 percent after a 1.9 percent slump yesterday. Bank of China Ltd. rose 1.2 percent, halting a four-day loss. Stocks sank yesterday amid concern that Chinese property prices will continue to fall amid higher money-market rates and political tension between the city and the mainland.
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