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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- In the past few weeks, some EM equity markets have reached new all-time highs (recovering sharply from the March 2020 panic), mostly driven by the constant rise in global liquidity and the US Dollar weakness.
- This chart shows the PE ratios of the most liquid EM equity markets, which gives a broad view of which markets are currently 'cheap' and which one are 'expensive'.
- As expected, Turkey, Russia and Brazil appear at the bottom of the 'League', as all currencies have remained weak in the past year (despite USD depreciation) amid rising economic and political uncertainty, with PE ratios of 9.7, 10.8 and 15.7, respectively.
- However, equities appear to be cheap in Hungary, where the situation has been more stable with the HUF experiencing strong gains recently following NBH 'hawkish' comments; PE ratio of BUX index currently stands at 13.35. The recent HUF strength pushed Hungary equities to a new record high, with BUX Index breaking above its 46,476 resistance this week.
- On the other hand, Thailand, India and Indonesia appear to be the most expensive equity markets in the EM World, with a current PE of slightly over 30.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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