EMERGING MARKETS-Stocks drop as Country Garden drags on China shares; EU prepares $8 bln Egypt aid
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IMF team arriving in Pakistan for bailout review- sources
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EU preparing $8 bln aid package for Egypt- FT
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Russia to raise 100 bln roubles from privatisation in 2024
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Stocks off 0.5%, FX down 0.2%
By Ankika Biswas
March 13 (Reuters) - Emerging market stocks fell on Wednesday, as Country Garden dragged broader Chinese shares lower, while investors focussed on a media report of an $8 billion European Union aid package for Egypt and a Reuters report of an IMF team arriving in Pakistan for a bailout review.
The MSCI index tracking emerging market stocks lost 0.5%, after hitting its highest level since July 2023 intraday, set to snap a five-day winning streak.
The currencies' gauge slipped 0.2%.
Country Garden fell 4.9% after the Chinese property developer missed a coupon payment and later unveiled its plans to raise funds within a 30-day grace period.
The Hang Seng Mainland Properties index dropped 1.1%, with the blue-chip CSI300 index and the Shanghai Composite index losing 0.7% and 0.4%, respectively.
Among other single movers, Cathay Pacific climbed 5.8% after Hong Kong's flagship airline posted its first annual profit since 2019.
Among major news, a media report showed the European Union is readying a 7.4 billion euro ($8.08 billion) package aimed at shoring up Egypt's economy amid fear that conflict in Gaza and Sudan could exacerbate financial trouble in the country.
"Easing dollar backlogs, a big revision of interest rates and in currency value, and the sizable FDI capital inflows are all very positive. But the risk here is that there would be a lot of attention on what happens to inflation in the coming months," said Luis Costa, head of CEEMEA strategy at Citi.
The Egyptian pound edged up 0.1% against the dollar, while the benchmark stock index dropped 3.3%, continuing to ease from a record-breaking run.
Further, Reuters reported an International Monetary Fund (IMF) mission is arriving in Pakistan on Wednesday for a second and last review of a $3 billion standby arrangement. If successful, the last review will release a tranche of around $1.1 billion. Islamabad had secured a last-gasp rescue package last summer to avert a sovereign default.
The Pakistani rupee rose 0.3%, though the benchmark KSE 100 fell nearly 1%.
The Russian rouble strengthened slightly against the dollar to 91.72, regaining some of the ground lost on Tuesday, supported by rising oil prices. A media report showed the finance ministry plans to raise at least at 100 billion roubles ($1.1 billion) from privatisation this year.
In Central and East Europe, the Hungarian forint edged up against the euro, easing from the one-year low hit on Tuesday after its central bank doubled down on its criticism of a proposed law change it says could erode its independence, deepening a standoff with the government.
On the data front, Romania's consumer price inflation rose to 7.23% on the year in February from 7.41% the previous month, exceeding expectations.
A recent Reuters poll showed most analysts expect the central bank to keep its interest rate on hold at 7.0% in the April meeting and deliver its first rate cut in May.
HIGHLIGHTS:
** Romanian President Iohannis to run for NATO leadership
** Putin warns the West: Russia is ready for nuclear war
(Reporting by Ankika Biswas in Bengaluru)