Biggest emerging stock slump in seven months wipes out 2013 gain

Sistema Slides

AFK Sistema dropped 4.9% in London, heading for the lowest close this year, after the Russian company said its Indian phone-operator unit is closing services in 10 of its regions of operation. Sistema also plans to participate in some of India’s spectrum auctions starting March 11, it said in a statement today.

The Czech PX Index fell 1.3% today. NWR tumbled 4.7% down after the Amsterdam-registered company said the net loss for October to December was 48.6 million euros ($64 million), exceeding the 35 million-euro estimated loss in a Bloomberg survey of analysts.

Hungary’s BUX Index lost 1.7%, heading for the lowest close since Jan. 8, as OTP Bank Nyrt., Hungary’s largest lender, plunged 2.7% in Budapest. The forint weakened 0.5% versus the euro, snapping a three-day winning streak.

Record Low

Poland’s WIG20 Index retreated 0.9%, while the zloty slid 0.4% against the euro. Telekomunikacja Polska fell 4% to the lowest level on record. Banco Espirito Santo SA downgraged the stock to sell from neutral today.

Brazil’s Bovespa Index lost 0.2% in early trading today. The gauge has tumbled 8.1% this year, the biggest decline among world equity gauges tracked by Bloomberg.

All 10 industry groups in the MSCI Emerging Markets Index fell, with measures for consumer-discretionary, material, energy and financial stocks sliding at least 1.5%. The broader gauge lost less than 0.1% this year, trailing the MSCI World Index’s 4.4% advance. The emerging-markets index trades at 10.5 times estimated earnings, compared with the MSCI World’s 13.7 times, data compiled by Bloomberg show.

The extra yield investors demand to own emerging-market debt over U.S. Treasuries rose 4 basis points, or 0.04 percentage point, to 281, according to JPMorgan Chase & Co.’s EMBI Global Index.

India’s Sensex fell 1.6%, the biggest drop since July 23. Shriram Transport Finance Co. tumbled 7.5% in Mumbai. TPG Capital is selling a $300 million stake in Shriram, according to terms obtained by Bloomberg News.

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