International capital has flooded into emerging market-focused funds this year as investors chase higher returns in faster-growing economies. Yet more exotic markets, such as the Gulf’s bourses, are largely being passed by and continue to languish.
Emerging market equity funds have seen inflows of $50bn in the first nine months of the year, says EPFR, a data provider. This has helped MSCI Barra’s emerging markets index to gain 21 per cent over the past 12 months.
While Egypt, an emerging market, has seen a net inflow of $876m this year, according to EFG-Hermes, the Gulf has seen net international capital outflows of $83m. As a result, the MSCI Gulf index, excluding Saudi Arabia, has shed 1 per cent over the same period.
No comments:
Post a Comment