Several economies were hard-hit this week, SA losing over R8 billion according to the IIF.
According to a report by Reuters, citing the Institute of International Finance (IIF), an organisation which tracks financial flows, events in Turkey, China and South Africa this past week have led investors to pull $1.3 billion out of emerging-market stocks and $100 million from bonds.
The IIF reported that the exodus of investment money was primarily concentrated in South Africa (R8.7 billion/$600 million) and China ($500 billion), although India also turned negative as debt flows reversed. Malaysia, Indonesia, Korea, Philippines, and Vietnam also saw money leave, albeit at a more moderate pace.
The IIF said:
“Turbulence, amid heightened tensions between the US and Turkey, has clearly weighed on investor appetitive for emerging market assets.The impact of market strains is likely to be most acute for countries with relatively large external financing needs.”
The IIF added that Thailand, Qatar and Brazil were the only countries in its sample group that saw money come into their asset markets over the last week.