{"id":588555,"date":"2023-06-13T00:00:00","date_gmt":"2023-06-13T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/13\/bulls-are-still-holding-out-hope-for-an-em-rally\/"},"modified":"2023-06-13T00:00:00","modified_gmt":"2023-06-13T00:00:00","slug":"bulls-are-still-holding-out-hope-for-an-em-rally","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/13\/bulls-are-still-holding-out-hope-for-an-em-rally\/","title":{"rendered":"Bulls are still holding out hope for an EM rally"},"content":{"rendered":"

<\/span>EM bulls still optimistic:<\/span> Bullish investors in emerging markets are holding out hope <\/span>that the asset class will stage an extended rally later this year and prove correct <\/span>Morgan Stanley\u2019s recent prediction<\/a><\/span> that the 2020s will be the decade of EMs, according to <\/span>Bloomberg<\/a><\/span>. <\/span><\/p>\n

2023 (so far) hasn\u2019t lived up to Morgan Stanley\u2019s expectations:<\/span> Waning economic activity in <\/span>China and high global interest rates have continued to put pressure on EM assets, which have significantly underperformed their peers in advanced economies <\/span>despite a promising start to the year<\/span>. MSCI\u2019s EM equity index is up 5% so far this year compared to the 11% increase in developed-market assets, while EM local-currency bonds have only slightly bettered a gauge of global debt.<\/span><\/p>\n

Yes, but: <\/span>EM assets stand to finally take off in the second half of 2023 as long as global interest <\/span>rates peak, Chinese authorities support growth and structural reforms in India reassure the market, investors tell the news outlet. <\/span><\/p>\n

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Qatar\u2019s sovereign wealth fund is going up a gear:<\/span> The USD 450 bn Qatar Investment <\/span>Authority (QIA) is planning to expand its investment reach into Asia and<\/span> the US and strengthen its footprint in the tech sector amid expectations for increased inflows from the country\u2019s natural gas revenues, the fund\u2019s CEO told <\/span>Bloomberg<\/a><\/span>.<\/span><\/p>\n

Remember: We\u2019re expecting QIA investments in Egypt.<\/span>Qatar pledged last year to <\/span>invest<\/a><\/span> as <\/span>much as USD 5 bn in Egyptian companies as part of wider Gulf efforts to shore up our economy and provide us with vital FX. The QIA is <\/span>yet to sign off on<\/a><\/span> any acquisitions but <\/span>reports in the local press<\/a><\/span> last week claimed that it is close to acquiring Telecom Egypt\u2019s 45% stake in Vodafone Egypt.<\/span><\/p>\n

ALSO WORTH NOTING-<\/span><\/p>\n