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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
- Russia's MOEX index has outperformed both SA & Turkey since the start of March, rising +9.87% vs +1.44% & -2.63% respectively.
- A moderation in geopolitical risks with the US has been the primary catalyst to gains in the Moex (+5.69% YTD, PE 10.44x), complimented by recent gains in the oil market – with Brent now trading back above $70/bbl and the demand outlook brightening. Relative to SA, Russia's stock index trades at a substantial discount.
- SA's Top40 remains in a broad consolidation phase (+13.22% YTD, PE: 19.32x), struggling for upside traction as commodities fail to deliver new highs to buoy mining stocks. Index heavyweight Naspers has also been contributing to downside pressure on the index owing to its large Tencent stake (-7.7% since March).
- Given its high exposure to precious metals, SA's index holds the highest PE valuation and is relatively expensive vs its peers, but has experienced a more positive macro environment, with the SARB keeping policy ultra-accommodative.
- Turkey's Bist100 remains under pressure, trading -2.98% in the red YTD (PE: 9.69x) due to high staff turnover at the CBRT, TRY instability, geopolitical risks and weaker overall investor sentiment.
- While the Bist100 trades at the lowest PE multiple, a number of idiosyncratic risks remain - justifying the cheaper valuation.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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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