LONDON Aug 7 (Reuters) – Emerging market equities steadied
at near-three-month highs on Tuesday after the hefty gains of
the two previous sessions, while South Africa’s stock market hit
new record highs.
Benchmark emerging stocks edged up 0.11 percent.
This follows Monday’s 1.5 percent rise which took the index to
its highest point since mid-May.
Johannesburg’s all-share index rose 0.3 and hit a
fresh record high high, powered by strong company earnings,
lower interest rates and inflows from foreign funds anticipating
more money printing by Western central banks.
South Africa’s benchmark top-40 index gained 0.3
percent, taking gains on the year to 9.9 percent and bringing
the index to four-year highs.
Russian stocks rose 0.5 percent, and the rouble
hit two-and-a-half month highs against the dollar. Russia
has been boosted by oil prices, which have risen above $110 a
barrel.
Russia’s central bank will meet on Friday, and some analysts
see a slim chance of an interest rate rise, given the recent
spike in inflation.
The Romanian leu rose 0.6 percent against the
euro, moving further away from record lows hit last week.
The country’s central bank capped the amount it gave banks
at a repo auction on Monday in a move some traders said was a
signal it would not tolerate too much leu weakness. The bank was
also said to have intervened to support the leu.
The Romanian currency has lost 2.2 percent since July 1 amid
political uncertainty following Prime Minister Victor Ponta’s
failed attempt to impeach President Traian Basescu.
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