{"id":555234,"date":"2021-11-07T03:56:44","date_gmt":"2021-11-07T03:56:44","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/07\/emerging-market-stocks-havent-kept-pace-with-developed-economies-this-year\/"},"modified":"2021-11-07T03:56:44","modified_gmt":"2021-11-07T03:56:44","slug":"emerging-market-stocks-havent-kept-pace-with-developed-economies-this-year","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/07\/emerging-market-stocks-havent-kept-pace-with-developed-economies-this-year\/","title":{"rendered":"Emerging-market stocks haven\u2019t kept pace with developed economies this year"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>This year\u2019s US-led equities boom has left emerging-market stocks behind, <\/strong>the <a href=\"https:\/\/www.ft.com\/content\/e6f30217-5527-454f-8f46-291aa487440b\">Financial Times<\/a> reports, with the expected monetary tightening in developed markets causing investors to anticipate a mass exit from EM assets. The gap between EM and developed-market equities hasn\u2019t been wider since 2013\u2019s taper tantrum, with MSCI\u2019s EM index registering negligible gains so far this year, while its DM index has shot up more than 20%.<\/p>\n<p><strong>Egypt, India and Turkey are particularly vulnerable to a more hawkish turn from central banks<\/strong>, one analyst told the FT. Anticipated interest rate hikes to curb inflation in developed markets could see growth stall even as energy prices continue to rise. That scenario could squeeze our finances, as more risky EM stocks and bonds lose their appeal for investors, according to Danske Bank\u2019s head of global macro research. Nevertheless, strong foreign reserves and a switch to longer-term debt \u2014 <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/1ed2af68-0b89-437b-babc-90d2546dbc8f\">two points<\/a> the Central Bank of Egypt (CBE) has <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3ece4ff1-2bbe-47cc-8701-d56223ac30f4\">been working on<\/a> of late \u2014 should provide some protection from the brewing EM market storm.<\/p>\n<p><strong>It\u2019s not just an emerging markets problem: US and UK hedge funds can\u2019t keep up <\/strong><strong>with changing central bank policies either. <\/strong>An intense sell-off in short-term government debt in anticipation of rate hikes has cost big players like London-based Rokos Capital and New York-based Alphadyne Asset Management bns of USD in recent months, the <a href=\"https:\/\/www.ft.com\/content\/d6cea43f-0a78-40a0-a1b0-777a5155f798\">Financial Times<\/a> reports. High volatility in government bonds has managers pointing fingers at the Fed and the <a href=\"https:\/\/enterprise.press\/pm-edition\/\">Bank of England<\/a>, as they argue that monetary tightening could throttle the economic recovery. \u201cI think the markets are telling you that global central banks are careening into a pretty sizeable policy mistake,\u201d one bond fund manager told the FT.<\/p>\n<p><strong>Dubai\u2019s bourse gets a revamp as the city looks to catch up to neighbors: <\/strong>Sheikh Maktoum bin Mohammed bin Rashid replaced five of seven board members on the Dubai Stock Exchange on Wednesday, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-11-03\/dubai-reshuffles-stock-exchange-board-as-it-gears-for-ipo-rush?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a>. The Dubai Financial Market jumped by 56% over the course of the week, bringing its weekly gains to a seven-year high of 9%. Earlier in the week, Bin Rashid announced plans to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-11-02\/dubai-to-list-main-utility-dewa-in-bid-to-revive-stock-market?sref=mmeFTDW1\">list the Dubai Electrical and Water Authority (DEWA)<\/a> at a USD 25 bn valuation, in what is expected to be the first of many IPOs designed to breathe new life into the emirate\u2019s bourse. Dubai\u2019s bourse, previously the leading exchange by traded volume in the UAE, has taken a backseat to Abu Dhabi\u2019s recently, which saw three IPOs this year alone. Last month, Nassef Sawiris\u2019 OCI-backed <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3c89de9d-f323-47a6-9a59-209d03c6b987\">Fertiglobe IPOed<\/a> on the Abu Dhabi stock exchange in one of the city\u2019s biggest IPOs to-date.<\/p>\n<p><strong>Boeing directors will pay USD 237.5 mn to settle a years-long lawsuit with <\/strong><strong>shareholders over safety faults in the company\u2019s 737 Max aircraft<\/strong>, which was involved in two fatal crashes in 2018 and <a href=\"https:\/\/enterprise.press\/stories\/2019\/03\/11\/what-were-tracking-on-11-march-2019\/\">2019<\/a> which killed 346 people. The settlement, which is still pending court approval, will also see the company reshuffle its board and adopt a range of additional safety measures. (<a href=\"https:\/\/www.reuters.com\/legal\/transactional\/boeing-directors-agree-2375-million-settlement-over-max-safety-oversight-2021-11-05\/\">Reuters<\/a> | <a href=\"https:\/\/www.wsj.com\/articles\/boeing-shareholders-reach-settlement-in-737-max-board-oversight-suit-11636076012\">Wall Street Journal<\/a> | <a href=\"https:\/\/www.nytimes.com\/live\/2021\/11\/05\/business\/jobs-report-stock-market-news#boeing-directors-737-max-settlement\">New York Times<\/a>).<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>11612.84<\/p>\n<\/td>\n<td>\n<p>-0.6% (YTD: +7%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>11,752<\/p>\n<\/td>\n<td>\n<p>+0.6% (YTD: +35.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>8,015<\/p>\n<\/td>\n<td>\n<p>+6% (YTD: +58.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>3,108<\/p>\n<\/td>\n<td>\n<p>-0.05% (YTD: +24.7%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,698<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: +25%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,304<\/p>\n<\/td>\n<td>\n<p>+0.3% (YTD: +13%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 82.74<\/p>\n<\/td>\n<td>\n<p>+2.7%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 5.52<\/p>\n<\/td>\n<td>\n<p>-3.5%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,817<\/p>\n<\/td>\n<td>\n<p>+1.3%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 61,457<\/p>\n<\/td>\n<td>\n<p>+0.6% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 fell 0.6% at Thursday\u2019s clos<\/strong>e on turnover of EGP 1.05 bn (31.4% below the 90-day average). Local investors were net buyers. The index is up 7.1% YTD.<\/p>\n<p><strong>In the green: <\/strong>Orascom Development Egypt (+3.5%), Fawry (+2.1%) and Eastern Company (+1.6%).<\/p>\n<p><strong>In the red:<\/strong> Mopco (-5.1%), GB Auto (-4.2%) and Sidi Kerir Petrochem (-2.2%).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This year\u2019s US-led equities boom has left emerging-market stocks behind, the Financial Times reports, with the expected monetary tightening in developed markets causing investors to anticipate a mass exit from EM assets. The gap between EM and developed-market equities hasn\u2019t been wider since 2013\u2019s taper tantrum, with MSCI\u2019s EM index registering negligible gains so far [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[102,1453,3206,72,119,3207,122],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-555234","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-capital-markets","tag-dewa","tag-dubai-stock-exchange","tag-enterpriseam","tag-financial-markets","tag-maktoum-bin-mohammed-bin-rashid","tag-planet-finance","wpautop","entry"],"acf":{"mongo_id":"ff494a2c-cdd6-44eb-8501-e6db11d2fc24","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[555213],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Emerging-market stocks haven\u2019t kept pace with developed economies this year - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/11\/07\/emerging-market-stocks-havent-kept-pace-with-developed-economies-this-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Emerging-market stocks haven\u2019t kept pace with developed economies this year\" \/>\n<meta property=\"og:description\" content=\"This year\u2019s US-led equities boom has left emerging-market stocks behind, the Financial Times reports, with the expected monetary tightening in developed markets causing investors to anticipate a mass exit from EM assets. 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Morgan Stanley Investment Management last week said it is pulling money out of the US stock market and putting it into equities in developing economies. \u201cEvery decade, there is a new leader in the market. 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