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A review of the MSCI emerging markets index in August could see India overtake Taiwan and become the second-heaviest-weighted market in the index, right behind China, the Financial Times writes.
What’s happening? Rising share prices, strong corporate earnings, and fresh paper in the market “have pushed India to just under a fifth of the MSCI emerging markets index while China has fallen to a quarter, from more than 40 per cent in 2020,” the FT writes.
More weight to India would confirm fund managers’ current bias: “The two consensus trades in emerging markets today are ‘long India, short China’,” Varun Laijawalla, an EM portfolio manager at asset manager NinetyOne, said.“The valuation spread between these two markets is as wide as it’s ever been.”
MARKETS THIS MORNING-
It’s red as far as the eye can see in Asia this morning as shares there tracked yesterday’s big dip on Wall Street, where jitters about the commercial viability of AI saw the Nasdaq 100 turn in its worst single-day performance since 2022. The Nikkei was down more than 3%, the Kospi off almost 2%, and the ASX 200 had lost nearly 1% as of dispatch time this morning.
Chinese shares are also taking a hit: Hong Kong’s Hang Seng is down 0.5% and the Shanghai Composite has dipped 0.4%.
Futures suggest that European equities will also face selling pressure at the opening bell later this morning, though perhaps less sharp than in Asia and the US (Europe isn’t exactly a hotbed of tech innovation). Wall Street stock futures gained slightly in overnight trading, implying that traders may think yesterday’s selldown was a bit too sharp.
What to watch for: Plenty of Big Tech earnings next week will provide fresh catalysts, as we note in this morning’s Big Story Abroad, above.
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ADX |
9,263 |
+0.3% (YTD: -3.3%) |
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DFM |
4,228 |
+0.3% (YTD: +4.2%) |
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Nasdaq Dubai UAE20 |
3,666 |
+0.4% (YTD: -4.9%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.9% o/n |
5.0% 1 yr |
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TASI |
12,101 |
0.0% (YTD: +1.1%) |
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EGX30 |
29,090 |
-0.4% (YTD: +16.9%) |
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S&P 500 |
5,427 |
-2.3% (YTD: +13.8%) |
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FTSE 100 |
8,153 |
-0.2% (YTD: +5.4%) |
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Euro Stoxx 50 |
4,861 |
-1.1% (YTD: +7.5%) |
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Brent crude |
81.35 |
-0.4% |
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Natural gas (Nymex) |
2.12 |
+0.3 |
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Gold |
USD 2,447 |
-0.3% |
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BTC |
USD 64,414 |
-1.9% (YTD: +47.5%) |
THE CLOSING BELL-
The DFM rose 0.3% yesterday on turnover of AED 382.0 mn. The index is up 4.2% YTD.
In the green: National International Holding Company (+14.7%), Parkin (+11.8%) and Mashreqbank (+5.4%).
In the red: BHM Capital Financial Services (-9.8%), Al Ramz Corporation Investment and Development (-8.1%) and Takaful Emarat (-4.9%).
Over on the ADX, the index also closed up 0.3% on turnover of AED 999.4 mn. Meanwhile Nasdaq closed up 0.4%.
