Emerging-Market Bears Want More as Stocks See Correction - Bloomberg

Emerging-Market Bears Want More as Stocks See Correction - Bloomberg:



"Investors are ramping up bets that the selloff in emerging-market stocks isn’t over after the benchmark index plunged 9.9 percent from a three-year high reached in September. 




Shares of the $38 billion iShares MSCI Emerging Markets exchange-traded fund being shorted have jumped almost five-fold over the past month to about 49 million, or 5.3 percent of all outstanding securities, the most since June, according to data compiled by Markit and Bloomberg. The MSCI Emerging Markets Index fell 0.4 percent yesterday to 992.53, the lowest since March 28. Earlier in the day, the index slid as much as 0.8 percent, touching a level that left it down 10 percent from its September high, a percent move that traders consider a correction.



After a six-month rally sparked optimism that three years of under performance in emerging markets had run its course, sentiment has soured again as growth from China to Russia slows. Brazil’s Ibovespa Index has lost 14 percent over the past month, the biggest decline in the world, as President Dilma Rousseff’s widening lead in polls ahead of the Oct. 5 vote dashed speculation that a new administration would take office and rekindle economic growth."



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