Compilation of Frontier Market related articles across the web from 25th November 2019 to 1st December 2019. Last week’s edition can be found here.
Index provider Morgan Stanley Capital International (MSCI) announced that Iceland will remain on the review list for potential inclusion in the MSCI Frontier Markets Indexes, with the results of a further review to be unveiled in the MSCI 2020 Market Classification Review.
While Iceland ticked multiple boxes that could see it sit moved from a Standalone Market to sit within the Frontier Market basket, there are still a few issues that need to be addressed and reviewed before MSCI feel confident about changing the country’s classification.
Foreign investors piling into Ukraine’s market may be sleepwalking into trouble, according to Bloomberg. An underdeveloped secondary market may spark problems for investors who wish to sell their local bonds if the market was to go south and may also face further problems with the illiquid nature of the foreign-exchange market.
South Korea and Vietnam are considering building a chip manufacturing plant for Samsung within the latter country’s borders, where the tech giant already has production plants for mobile phones and other IT devices. The envisioned center is expected to be completed by 2022.
International investors are spooked by the new Peronist government in Argentina, according to Rodrigo Amaral. There may be fears that the left-wing populist policies that destroyed the economy “last time around will be introduced”.
Kuwait’s upcoming promotion to Emerging Markets status in the MSCI indices in 2020 is expected to attract an estimated $7.5 billion of inflow from active investors, according to HANetf. Kuwait currently holds the largest position in the MSCI Frontier Markets Index with a weighting of just over 30%. There has also been a recent launch of a new exchange traded fund (ETF), the Invesco MSCI Kuwait UCITS ETF, in anticipation of its promotion.
E-commerce retail platform Jumia has closed its Tanzanian business, just ten days after leaving Cameroon. In a statement released released by the company, the decision to close down the business in the East African nation is to “help put our focus and resources where they can bring the best value and help Jumia thrive”, just after saying that Tanzania has “strong potential”.
Jumia now operates in Nigeria, Egypt, Morocco, Kenya, Ivory Coast, South Africa, Tunisia, Algeria, Ghana, Senegal, Uganda and Rwanda.
Key Statistics of the Week:
- Jan-Nov Foreign direct investment (FDI) in Vietnam stands at $17.62 billion.
- Ghana holds interest rates at 16%.
- Nigeria holds interest rates at 13.5%.
- Croatia Growth Rate Q3 YoY rises to 2.9%.
- Sri Lanka holds interest rates at 7%.