Investors Living in Emerging Markets are a Bullish Bunch!

Fantastic new commentary out by Mark Mobius, he goes into talking about the fundamentals, foreign reserves and investment sentiment in emerging markets, see below for a snippet.

According to the GISS, 58% of investors residing in developed markets believe their local stock market will be up this year, but investors in emerging markets were even more upbeat – 66% believed their local stock market would post a bullish performance in 2013. Similarly, investors residing in emerging markets expected higher returns on their investments, with an average return expectation of 12% this year and 18% over the next 10 years. Those in developed markets expected a 7% average return in 2013, and 10% over the next 10 years. I find that noteworthy as growth rates in emerging markets are also expected to be generally higher than in developed markets this year, although stock market returns don’t always directly correlate with growth rates. In addition, we believe the easy monetary policies of central banks globally could drive more assets into emerging markets.

Source: Franklin Templeton

Changes in MSCI Thailand Index

This came across my desk yesterday.

MSCI Thailand (MSCI Global Standard)

  • Add : HMPRO, MINT, INTUCH, TRUE
  • Delete : None

MSCI Thailand (MSCI Global Small Cap)

  • Add : ANAN, BMCL, EASTW, EA, GRAMMY, GUNKUL JMART, KTC, MALEE, N-PARK, OFM, OISHI, SAMTEL, SPCG, TFD, THRE, UMI, UV, VGI, WHA
  • Delete : BLA, BTS, VNT

 

Stocks in the news (bay, mint, ratch, tsth, tta) 17.05.13

BAY

BAY opens Laos venture — Krungsri Consumer, an unsecured loan lender under BAY, plans to commence its auto and personal loan joint venture in Laos in July. BAY’s two financial arms – Krungsri Consumer and Ahudhya Ca;pital Auto Lease (Krungsri Auto) – each own 35% of Krungsri Financial Service (Laos), with the balance held by a Laotian auto lender. The JV agreement is scheduled to be signed today and business operation will kick off from July 1, said Thakorn Piyapan, Krungsri Consumer’s MD. (Bangkok Post, 17/05/13)

Comment: Wouldn’t be surprised to see more Thai banks opening ventures through Vietnam, Cambodia, Laos, Burma.

MINT

Minor upbeat about China — MINT expects to see its first profit in eight years from its restaurant operation in China. Chaiyapat Paitoon, the VP for strategic planning, said Sizzler and the Riverside & Courtyard have performed well. Since acquiring 49% of Riverside at the end of last year, Minor’s restaurant business in China has turned around with a net loss of only 21mn yuan (Bt102mn) in 2012. Mr. Chaiyapat said the company sees good growth potential in China thanks to its huge population and growing economy. (Bangkok Post, 17/05/13)

Comment: China has been a drag on Mint’s operations for years as they have struggled to adapt to the local market there, but given Mint’s track record you wouldn’t want to bet against Heinecke. Continue reading Stocks in the news (bay, mint, ratch, tsth, tta) 17.05.13