Azernews.Az

By Bloomberg

Emerging-market stocks fell, sending the benchmark index to a one-week low, as Chinese oil companies retreated and investors awaited progress on Greece’s bailout extension. Turkey’s lira weakened with ruble forwards.

Cnooc Ltd. and PetroChina Co. slid at least 1 percent in Hong Kong. Celltrion Inc. jumped to a record in Seoul to lead gains among drugmakers. The lira weakened 0.9 percent against the dollar, while ruble forwards lost 1.7 percent in offshore trading after Moody’s Investors Service cut Russia’s debt rating below investment grade.

The MSCI Emerging Markets Index retreated 0.4 percent to 980.54 at 8:57 a.m. in London, heading for lowest close since Feb. 12 and extending last week’s 0.2 percent loss. Energy shares led the retreat as oil traded near $50 a barrel in New York, following the first weekly decline in a month. The Greek government has until the end of Monday to complete a list of policies in return for a four-month extension of bailout funds agreed last week.

“I see oil will stabilize at $50 in the short term and energy producers may have to live with this reality for now,” Priyo Santoso, the chief investment officer at PT Mandiri Manajemen Investasi, said by e-mail from Jakarta. “Greece will remain the biggest risk for investors as the market waits to see if the country can meet all the covenants set on its debt.”

Eight of 10 industry groups in the developing-nation index declined, with the measure of energy producers falling 1.6 percent. The gauge of health-care shares climbed 0.5 percent.

Lira Weakens

Cnooc slid 2.8 percent, its biggest retreat since Jan. 6, while PetroChina lost 1 percent. Oil slipped as Libya restarted a crude pipeline after a fire and Oman said it will increase production by as much as possible.

MSCI’s emerging-markets gauge has risen 2.5 percent this year and trades at 11.7 times estimated earnings for the next 12 months, according to data compiled by Bloomberg. The MSCI World Index of developed-nation shares has advanced 3.4 percent and is valued at 16.7 times.

Celltrion jumped 14 percent, extending its gains this year to 89 percent, after Eugene Investment & Securities Co. said the company’s arthritis therapy medicine will win global customers.

The lira headed for its biggest drop since Feb. 6 before Turkey’s central bank convenes to decide on interest rates tomorrow. Turkish troops entered Syria and evacuated 38 soldiers who were part of an honor guard because of threats from Islamic State militants, Prime Minister Ahmet Davutoglu said over the weekend.

Ruble forwards weakened after Moody’s downgraded Russia one step to Ba1, the highest non-investment level and in line with countries including Hungary and Portugal. Moody’s has a negative rating outlook on the country, according to a report released Friday. Standard & Poor’s cut the country to speculative grade in January.