Emerging Stocks Erase Weekly Loss as Samsung Surges; Ruble Gains

By Nguyen Kieu Giang

Emerging-market stocks climbed for a third day, with the benchmark gauge poised to erase a weekly drop, as Samsung (005930) Electronics Co. led a rally for technology companies and BYD Co. rebounded from a record plunge. Russia’s ruble gained.
Samsung surged 4.9 percent in Seoul after the Maeil Business Newspaper said it will pay higher dividends. BYD, partly owned by Warren Buffett’s Berkshire Hathaway Inc., rose 14 percent in Hong Kong after saying the shareholder had no plan to cut its stake. Chinese shares reached a four-year high as Aluminum Corp. of China Ltd. soared 10 percent on an asset-sale plan. The ruble strengthened 2.7 percent versus the dollar.
The MSCI Emerging Markets Index added 0.9 percent to 943.44 at 8:03 a.m in London, set for its steepest three-day advance in 13 months. The gauge has risen 0.5 percent this week to extend a surge in global equities after the Federal Reserve pledged to be patient on
raising U.S. interest rates. Russian President Vladimir Putin said the nation can withstand an economic downturn while plunging oil prices undermine the ruble.
“Hope that the Fed will delay rate increases has buoyed markets,” Attila Vajda, managing director at Project Asia Research & Consulting Pte., said from Ho Chi Minh City. “Volatility in Russia and oil prices can still overshadow this newly found optimism among investors.”
The developing-nation gauge has dropped 5.9 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has increased 3.2 percent and is valued at a multiple of 15.5.

Higher Dividends

All 10 industry groups in the emerging-markets measure rose as a gauge of technology companies jumped 2.8 percent, the most since July 2013. Samsung Electronics, the world’s biggest mobile-phone maker, surged the most since Nov. 27. The company said after the market close it’s considering raising its 2014 full-year dividend by 30 percent to 50 percent. South Korea’s Kospi index climbed 1.7 percent, ending a four-day loss.
Taiwan Semiconductor Manufacturing Co. added 4.9 percent, the steepest advance since June 2013, driving the Taiex Index to its largest increase in two weeks.
The ruble strengthened for a second time in three days, while the Micex Index sank 1.5 percent after surging 4.5 percent yesterday. South Africa’s equity index added 0.8 percent.
BYD surged the most since November 2011. The company, whose shares tumbled 29 percent yesterday, also reiterated comments made in a conference call that its operations are normal and that it has no substantial foreign exchange losses tied to its Russia business. Hong Kong’s Hang Seng China Enterprises Index (HSCEI) added 0.6 percent.
The Shanghai Composite Index rose 1.7 percent, extending this week’s advance to 5.8 percent. Chalco, as Aluminum Corp. is known, jumped the most since September 2013 and rallied 6.5 percent in Hong Kong. The company will sell stakes in four solar product units in Ningxia province through a public tender.
Philippine shares climbed 1.4 percent while Indian equities gained 1.3 percent. Malaysia’s ringgit weakened 0.4 percent, its first decline in four days, while Indonesia’s rupiah strengthened 0.5 percent.