Indonesia is the only major emerging stock market to have posted any real gains in 2011, a year in which the broad MSCI emerging stock market index lost 20 percent and underperformed developed markets in a flight from risk.
But for Indonesia, which many say should turn the BRIC club into BRIIC, last year was one of surging growth, with the world’s largest coal exporter helped by rising commodity prices.
Distressed debt broker Exotix, which specialises in the kind of bonds most of us are too risk-averse to touch, recommends buying North Korean defaulted debt following the death of Kim Jong-il.
Stuart Culverhouse, chief economist at Exotix, says the debt, which matures in 2020 but could be rolled over if holders agree, could reach 20-22 cents on the dollar near-term, from 14-18 now.
Index compiler MSCI will announce tonight at 2300 GMT whether or not Qatar and United Arab Emirates get an upgrade to the firm’s flagship global emerging market stock index from their current slots in the frontier market index.
If any Qatari or UAE stocks get into the index, they are likely to make up only a small percentage of the benchmark, which has heavy weightings for countries like the BRIC nations and South Korea. But the move would attract investment from the many funds who measure their performance against the index, and might prefer not to deviate too far from it.
Emerging markets may be growing faster than the developed world, but emerging market jobs in the financial sector are still feeling the pinch.
The likes of Greece and Italy may find it tricky to issue international or domestic debt next year, but Russia and Saudi Arabia are stepping up to the plate.
In a week when investors have become increasingly anxious about political risk in Russia (could the Arab Spring be followed by a Russian Winter?), Russia’s undeterred finance ministry said today the country plans to issue a Eurobond early next year and will pick 3-4 banks to lead the deal in the next few weeks, after 22 banks bid for the opportunity.
If Greece leaves the euro, what will its debt be worth? Maybe 50 percent of face value, maybe 20 percent, or maybe even nothing.
No one much admits to owning Greek debt these days, and the EU summit has done little to make holding it seem like a good idea.
Euro-denominated debt isn’t looking too popular in central Europe these days, with spreads in Hungarian and Polish euro bonds widening over the yields of dollar bonds with the same maturities.
Hungary — and to a lesser extent Poland — have been suffering from their exposure to the economies and banking systems of the euro zone.
LONDON (Reuters) – Schroders holds the lowest position possible in equities and has extremely high levels of gold and cash, reflecting its concern about recession in the developed world and a failure to resolve the euro zone debt crisis, its chief investment officer said on Tuesday.
“We are at the pessimistic end,” Alan Brown told the Reuters 2012 Investment Summit.
As Egypt goes to the polls for a second day, most international investors remain reluctant to enter its markets until there are clearer signs of political stability.
Egyptian stocks bounced today but are still at weaker levels than shortly after the ousting of Hosni Mubarak in February, and debt insurance costs are higher.
CAIRO, Nov 29 (Reuters) – Egypt’s benchmark share
index jumped 5.4 percent on Tuesday, buoyed by smooth
voting in a parliamentary election, but foreign investors said
they were waiting on the sidelines for an end to political
turmoil and a budget crisis.
Egypt is scrambling for foreign help to fill a widening
budget deficit and foreign reserves are sliding as the
government tries to support the country’s currency.