Compilation of Frontier Market related articles across the web from 4th November 2019 to 10th November 2019. Last week’s edition can be found here.

MSCI Frontier Markets Index November Review: Four New Additions & Eight Deletions

Morgan Stanley Capital International (MSCI) has announced changes in the Frontier Markets Index in its latest review for November 2019 which sees four new securities added – all banking sector stocks – and eight removed.

The four companies that will be added to the MSCI Frontier Markets Index are: Commercial Bank of Ceylon (Sri Lanka), Nova Ljubljanska Banka (Slovenia), Ho Chi Minh City Development Bank (Vietnam) and Komercijalna Bank Belgrade (Serbia). Five out of the eight securities removed from the index will be reallocated to the MSCI Frontier Markets Small Cap Index instead.

 

Hot Demand For Frontier Debt Is Poised To Start Cooling Off

Frontier-market bond investors may be in four a tough 2020 as the increasing prospect of defaults in countries such as Argentina, Lebanon and Zambia are making market participants more nervous.

 

Fitch Ratings Keep Vietnam’s Sovereign Rating At ‘BB’ With A Positive Outlook

Fitch Ratings affirms Vietnam’s sovereign rating at ‘BB’ with a positive outlook after the delayed payment on a Vietnamese government-guaranteed loan in September was paid in full.

Vietnam is currently benefiting from the US-China Trade War as a rise in the relocation of various manufacturing bases have had a positive effect on the country.

 

No Distress: Kazakhstan’s ‘Opening Up’ Makes It A Standout Among Frontier Markets

Kazakhstan’s attractive local currency bond yields, low risk of default (relative to other Frontier Market economies), liberalisation of the market and government-backed diversification program away from its heavy dependency in commodities is making it a standout country among Frontier Markets.

 

Kuwait Eyes More Crude Oil Exports To China

While addressing participants at the China International Import Expo in Shanghai, a senior Kuwaiti oil official affirmed the country’s plan to increase its crude oil exports to China to more than 600,000 barrels per day by the end of 2019.

As part of its strategy, Kuwait plans to increase its production capacity of crude oil in excess of four million barrels per day by 2040, with a refinery capacity of 1.4 million barrels per day by 2021.

 

Kenya’s Population Hits 47.6 Million

According to data from the Kenya National Bureau of Statistics, Kenya’s population grew by 2.2% as the it hit 47,564,400 people.

 

Key Statistics Of The Week:

• Latvia Industrial Production YoY for September rises to 7.3% (vs 2% previous).
• Morocco Q3 Unemployment Rate rose to 9.4% (vs 8.5% previous).
• Romania holds interest rates at 2.5% (matching analysts’ consensus).
• Estonia YoY Inflation Rate for October fell to 1.6% (vs 2.2% previous).
• Cyprus YoY Inflation Rate for October fell to -1% (vs 0.9% previous).
• Ukraine YoY Inflation Rate for October fell to 6.5% (vs 7.5% previous, and lower than analysts’ consensus of 6.9%).