Global investors have yanked $1.3bn out of emerging-market stocks — nearly half of it from SA
The emerging-market selloff picked up pace this week, and SA bore the brunt of it, with China close behind
London — Investors rattled by events in Turkey, China and SA have pulled $1.3bn out of emerging-market stocks in the past week and $100m from bonds, according to the Institute of International Finance, which tracks financial flows. An emerging-market selloff has picked up pace over the last week as concerns about Turkey and others have compounded longer-term worries about a global trade war, a strong dollar and rising borrowing and energy costs. The Washington-based IIF said the exodus of investment money this week has largely been concentrated in SA and China, amounting to $600m and $500m, respectively. However, India has also turned negative this week as debt flows reversed, and Malaysia, Indonesia, Korea, Philippines and Vietnam have all seen money leave, albeit at a moderate pace. "Turbulence, amid heightened tension between the US and Turkey, has clearly weighed on investor appetitive for emerging market assets," the IIF said in a new report. SA’s reliance on portfolio debt and...
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