Jim Armitage: New players emerging in the emerging markets
Mr Mittal seems, on the face of it, a lot more confident in the outlook for China and other far-flung territories than the veteran emerging markets fund manager Mark Mobius. Mr Mobius, who runs a $50bn fund investing in the emerging markets for the fund manager Templeton, is convinced that valuations on companies in many of these regions remain too high. In his words: “You can expect a lot more selling.”
And this from a 77-year-old who’s been investing there for the past four decades.
He reckons the 11 per cent rout in the share prices of emerging markets since October is not yet enough, even after the past two weeks in which more than $12bn was pulled out of funds investing in the developing world. He’s particularly sceptical about the bigger countries. We can assume he’s talking here about the likes of India and Turkey, where weak currencies are triggering central bank interest rate rises, and China, where growth is falling.
Mr Mobius has not taken his money off the table altogether, though. He’s just being a touch more selective in his adventures. Cue investments in companies in Kenya, Nigeria and other African countries less affected by the vagaries of the US Federal Reserve, whose actions have such a dramatic impact on bigger economies. These are known in the trade as “frontier markets” and include, in Morgan Stanley’s definition, places such as Kazakhstan and Slovenia in Europe, Jamaica and Argentina in the Americas, and Bahrain, Kuwait and Sri Lanka in the Middle East and Asia.
So far, the figures seem to back him up. Bloomberg reports that profits among companies in Morgan Stanley’s index of frontier markets are at five-year highs. Last year, their share prices outpaced the larger emerging markets by 26 per cent.
Bulgaria, Botswana, Bangladesh, your time has come.
Returning to the stage after 20 years makes actress feel 'nauseous'
Top conservatoire offers ‘groundbreaking’ arts degree
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Grandmas keep accidentally tagging themselves as Grandmaster Flash on Facebook
- 4 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 5 Kanye West halts concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Islamic State: Pope is 'being targeted by Isis', Iraqi ambassador to the Holy See warns
Jennifer Lawrence and Kate Upton nude pictures exhibition cancelled after artist concedes photos were 'stolen property'
Scottish independence referendum: A nation divided against itself
John Travolta addresses former pilot's gay romance allegations publicly for the first time: 'That was the lowest I'd ever felt'
Richard III: Two years after his body was found scientists discover how he died
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...