* Stocks stall near 6-mth highs as oil price weighs on
sentiment
* Oil benefits Russia; stocks jump almost 4 pct, rouble up
1.5 pct
* Turkey hit as oil imports to exacerbate current account
gap
By Sujata Rao
LONDON, Feb 24 (Reuters) – Emerging equities rose on
Friday but failed to regain recent six-month highs, held back by
concern that soaring oil prices will hurt the fragile world
economy, while oil-exporter Russia’s stocks rose and the rouble
hit a 5-1/2 month high.
Brent crude futures have surged 11 percent this month as
countries scrabble to source oil supplies from producers other
than Iran, which is facing Western sanctions over its nuclear
programme. Oil hit nine-month highs of almost $124 per barrel.
That is putting a dampener on the optimism generated by this
week’s aid deal for Greece, strong growth indicators from
Germany and the liquidity injection expected next week from the
European Central Bank as part of its long-term financing plan.
“The sharp moves we saw in January have to a large extent
lost momentum. While the EM outlook has improved due to reduced
risk of contagion from the euro zone banks, a correction is due
and oil prices are a key potential trigger for that,” said Mats
Olausson, head of emerging markets research at SEB in Stockholm.
By 1220 GMT, emerging stocks rose 0.6 percent, on
track for the second straight week of gains and having risen
around 4.5 percent this month. However, reflecting the oil price
concerns, share markets in oil importers India and South Korea
booked their first weekly losses in eight weeks.
Continued…
