The Year of Emerging Markets
The expiring year was the year of emerging markets. The leader was the stock market of Peru, which soared 182 percent on metal demand, Thomson Financial reported. Cyprus grew 157 percent, China jumped 101.7 percent, Russia benefited from 65.8 percent, Brazil had 40.9 percent and India posted the 36.6-percent gains.
Less the small markets of Peru and Brazil, the stake on the BRIC states (Brazil, Russia, India and China) proved well-justified, even though the May adjustment on emerging markets gave rise to some agitation. Russia’s Trade System’s benchmark, RTS, for instance, soared from 1190 to 1765 (up nearly 50 percent) by May, but shed to 1235 further on to finally adjust to 1851 as of yesterday.
The Funds investing in emerging markets, Emerging Portfolio Fund Research said, funneled roughly $33 billion from January to May. But the trend was followed by the outflow and the final gains didn’t exceed $20.8 billion by mid.-December.
BRIC will be of interest next year as well, the analysts forecast. “It seems more reasonable to speak not only about this quartet but rather about investing in advanced emerging markets in general. The economy of these states has become more self-sufficient and stable,” said Evgeny Gavrilenkov, chief economist at Troika Dialog.
“There is no alternative. Investing in these markets ensures the growth along with the good diversification in terms of geography,” specified Maxim Shein, chief of the analytical department at Broker Credit Service. PriceWaterhouseCoopers widened the list of promising developing states from four members of BRIC to seven states, while Goldman Sachs set forth 11 countries.
www.kommersant.com
All the Article in Russian as of Dec. 27, 2006
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