2015年7月31日 星期五

Foreigners Rush Out Of Indonesia, Malaysia And Thailand; Korea, Taiwan Next?

blogs.barrons.com

In the last two months, foreigners net sold close to $10 billion of their portfolios in emerging Asia ex-China, data provided by Credit Suisse shows.

Indonesia, Malaysia and Thailand have “capitulated” to foreign selling. This year, foreigners have net sold $857 million of their portfolio assets in Indonesia, “approaching 2013 lows,” wrote analysts Sakthi Siva and Kin Nang Chik. Meanwhile, foreign selling constitutes 0.9% of Malaysia’s market cap and 0.4% of Thailand’s market cap.

Foreigners also enthusiastically sold Korea and Taiwan in the last two months, totally $2.9 billion and $4.3 billion respectively. But year-to-date, they are still net buyers. Will they stop selling though? Taiwan this morning reported a lot worse-than-expected second-quarter GDP growth number and Samsung Electronics, the largest component of the KOSPI Index, continues its slide today after its new flagship Galaxy S6 disappointed street estimates yesterday.

India remains a foreigners’ darling however. They net bought $827 million in July, after selling $521 million in June. After China’s stock market sell-off, foreigners realized that India is the best they’ve got among emerging Asia.

This month, the iShares MSCI Indonesia ETF (EIDO) fell 5%, the iShares MSCI Malaysia ETF (EWM) dropped 2% and the iShares MSCI Thailand Capped ETF (THD) slumped 9%. The iShares MSCI South Korea Capped ETF (EWY) and the iShares MSCI Taiwan ETF (EWT) fell 7.7% and 6.5% respectively.

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