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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
- Earlier this month, we saw that the geopolitical tensions have been weighing on Russian risky assets and RUB in recent weeks. Russia has been the ‘cheapest’ market according to our value scoring model (versus Turkey previously) relative to other EM equity markets (see link:https://marketnews.com/geopolitical-tensions-leave...)
- In this chart, we compute the z-score of P/B ratios of the 15 EM equity markets (+ MXEF Index) using over 10 years of data (since Jan 2010) and then rank them from 'cheapest' to 'most expensive' based on the distance between minimum value and the current z-score.
- Interestingly, while Indonesia appears as the second 'most expensive' equity market using our value scoring method, it becomes the second 'cheapest' market when using the z-score approach.
- Malaysia and Chile are the two other 'cheapest' equity markets.
- The political uncertainty in Chile last year led to a strong depreciation in the CLP and Chilean equities, which fell by nearly 40% from peak to trough.
- On the other hand, India and Czech equities remain the most 'expensive' markets, shortly followed by Hungarian equities, which reached an all-time high in Q4 2021 before edging lower in recent weeks amid global risk-off environment.
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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