Most Emerging Stocks Increase, Turkey Shares Go to Record High

Most of the emerging stocks advanced on today as the investors weighed the comments of the Chairman of Federal Reserve, Ben S. Bernanke on the stimulus. On the other hand, stocks of Turkey surged ahead to a record level as well. The MSCI Emerging Markets Index however was little changed and the same is currently at 1,047.94. Out of all the stocks, 408 went ahead, whereas, 363 experienced decline. Stocks jumped ahead after Bernanke stated that if premature withdrawal is made of the stimulus, it will put economic recovery at a big risk. Bernanke added that the Central Bank may step down the asset purchases in the next few meetings of the same.

According to the Chief Investment Officer of Solaris Group LLC, Timothy Ghriskey, it’s very early to talk of any kind of tightening. Ghriskey added that if tightening is talked about, that will push out the timing for any surge in the interest rates or curtail any bond buying program as well. It is promoting the economic growth and that is what the stocks live for ultimately.

The broad index has experienced a decline of 0.7% in 2013, whereas, the MSCI World Index has gone ahead by 14%. As far as the developing nation stocks are concerned, health care shares experienced increase, whereas, the phone companies declined.

The iShares MSCI Emerging Markets Index exchange-traded fund surged ahead by 0.1% and the same is currently at 43.48. On the other hand, a measure of options prices on the fund and possibility of price swings, the Chicago Board Options Exchange Emerging Markets ETF Volatility Index declined by 0.1% and the same is currently at 17.47.

The benchmark stock gauge of Turkey, Borsa Istanbul Stock Exchange went to an all-time high figure as the same has increased by 2.2%. The biggest listed bank of Turkey, Turkiye Garanti Bankasi, went ahead by 4.7%.

Russian benchmark stock gauge Micex Index went ahead by 1.8%, marking its highest surge in the last 2 months. The ongoing sale of VTB of $3.3 billion of new shares in Moscow is expected to boost the free float of the same to 39% and it may see MSCI increase the weighting of the bank to 3.3%, from its earlier value of 2.1%. Sberbank thinks that the move of MSCI may trigger passive fund inflows worth $64 million.