Kazakh Stocks Fall Most in a Month on Copper, Oil Price Drop
Aug. 17. Bloomberg
By Beth Mellor and Gavin Serkin
Kazakhstan’s stocks declined the most in almost a month, led by commodity producers, as the price of copper sank and oil dropped to a two-week low.
The Kazakhstan Stock Exchange Shares Index fell as much as 4.2 percent, the biggest drop since July 22, and traded 3.5 percent lower at 1,258.22 at 3:55 p.m. in Almaty.
Kazakhmys Plc, the country’s largest copper producer, fell 12 percent to 2,100 tenge, its biggest retreat since April. Eurasian Natural Resources Corp., a producer of ferroalloys and iron ore, lost 2.6 percent to 2,045 tenge. Together, the two metal producers account for 28 percent of the KASE index.
Copper for three-month delivery fell as much as 3.9 percent on the London Metal Exchange on concern the doubling in price since January no longer reflects the outlook for demand. China’s July imports of copper shrank 15 percent from a month earlier, according to the Beijing-based customs office.
Crude declined as much as 2.7 percent to $65.69, the lowest level since July 29, after an Aug. 14 report showed an unexpected decline in consumer confidence in the U.S. economy.
KazMunaiGaz National Co., Kazakhstan’s state-owned oil and gas producer, decreased 3.9 percent to 18500 tenge. The central Asian economy holds 3.2 percent of the world’s oil reserves according to BP Plc.
Stocks in Kazakhstan climbed 56 percent in the second quarter on speculation recovery from the first global recession since World War II will boost demand for commodities.