Emerging markets always find themselves on the receiving end of geopolitical and economic tensions and May was no exception, with stock markets giving up most of the gains achieved this year on broadening trade war tensions. The MSCI Emerging Markets Index slumped almost 8% during May in the face of investors disinvesting a massive $14.6-billion from emerging market equities, the largest monthly foreign investment outflow since June 2016.
But do emerging markets deserve to be subject to blanket sell-offs like these when risk-off sentiment takes hold? Or are there any countries in this universe that deserve different treatment? South Africa has always been at the receiving end of any emerging market sell-off because it has such liquid financial markets. This enables investors to get in and out quickly and efficiently and has sent the rand reeling in the past. This was evident last week when South Africa felt the greatest impact of investor rebalancing as Saudi Arabia entered the MSCI Emerging Markets Index, comprising 2.6% of the Index. It was the biggest daily outflow on record, with foreigners pulling R13.
Safety includes emerging market countries’ current-account positions, sovereign credit ratings and foreign exchange reserves. Reserves are scored on the basis of whether a country meets the International Monetary Fund’s adequacy ratio or not.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business Maverick: Liquidity risks haunts China’s fast-growing bond marketsJust as Beijing is opening up to outsiders its byzantine regulatory framework and patchy trading volumes could cause a shock in the country’s debt market. But pravingordhan must be held account him and PresJGZuma there is no difference all have violated the constitution. Pravin is not above the law. Did u get that clear?
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: Cartoon Friday: RicoU misleading the nation, ANC bankrupted VBS not EFF
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: South Africa’s carbon tax raises questions and hot airAs of Saturday 1 June, South Africa’s government is taxing carbon. This policy is designed to make polluters pay and help the continent’s most industrialised economy meet its targets to reduce the emissions of greenhouse gases linked by most scientists to climate change – the burning ecological issue of our era. But is it an appropriate policy for a developing economy with energy-intensive industries?
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: SAA CEO Jarana resigns, placing SAA’s turnaround plan in questionNot again. Not another one. SAA CEO Vuyani Jarana has resigned, becoming the eighth SAA CEO to resign in the space of six years, raising the question of whether the airline is now so run down from years of mismanagement and corruption that it's possible to save it at all. And there is the niggling issue of whether government even wants to save it.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK — INVESTMENT ANALYSIS: Naspers: to infinity and beyondCape Town based internet firm, Naspers, has announced it will list a subsidiary company, Newco, on the Euronext exchange in July. Newco will hold all of Naspers offshore technology assets, including Tencent, OLX and PayU, and will have a secondary inward listing on the JSE. Naspers will remain listed on the JSE.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK: Once bulletproof, listed property stocks are flounderingThe listed property sector managed to ride out the economic and political turmoil during the corrosive Jacob Zuma years. Investors backing listed property stocks were consistently rewarded with inflation-beating dividends. However, worsening trading conditions are dampening results and forcing companies to downgrade their dividend growth.
Source: dailymaverick - 🏆 3. / 84 Read more »
Business Maverick: After gobbling up Lonmin, the Sibanye juggernaut rolls onSibanye-Stillwater and Lonmin shareholders on Tuesday 28 May 2019 approved a takeover offer by the former for the latter. This marks the end of one era in South African platinum as Lonmin, formerly linked to Lonrho, rides off into the sunset, with a history stretching back over a century. And a new era is in the offing, as Sibanye becomes the world’s largest primary producer of platinum group metals (PGMs), with an eye on expanding into battery metals.
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK — INVESTMENT ANALYSIS: Beyond traditional investments: cranes, planes and rock ’n rollCranes, planes, and rock and roll don’t seem to quite fit into the world of hard-core investments, but you may already have them in your portfolio. What are they doing there?
Source: dailymaverick - 🏆 3. / 84 Read more »
Manufacturing migration: Trade spat shifts business from 'Factory of the World'From socks and sneakers to washing machines and watches, Asian countries are hoping the US-China trade war will permanently boost manufacturing as brands dodge the row by choosing cheaper locations to make their goods.
Source: TimesLIVE - 🏆 28. / 59 Read more »