Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Emerging-market risk

Emerging-market risk

TrevorKeidan

As confidence returns, investors are becoming more prepared to bet on the developing world.

EMERGING-MARKET investments are again in the news as a cautious appetite for risk returns to global markets.

Not so long ago emerging markets - such as the BRIC countries (Brazil, Russia, India and China) - were all the rage. However, once the global financial crisis took hold interest began to wane as investors lost their appetite for volatility.

Some authoritative bodies such as the FTSE differentiate between advanced emerging markets and secondary emerging markets where factors such as infrastructure and gross domestic product are taken into account.

With this in mind where exactly does Cambodia fit in? Well, the short answer is that Cambodia is not an emerging market yet. Cambodia is considered a pre-emerging market or a "frontier market". It is, however, expected to graduate to emerging-market status once the Cambodian stock exchange has started up.

Emerging and frontier markets anywhere can make for a bumpy ride.

Vietnam last year saw the VN Index fall 66 percent, then rebound 60 percent in the second quarter as Asia's best performer.

It is now therefore back in favour following strong GDP results from April.

A recent poll conducted by Bloomberg on emerging and frontier markets showed that investors were still willing to take on risk and are particularly interested in hunting for opportunities in China and India - 40 percent of those who took part believed that the most profit could be made by investing in emerging markets.

However, remember that emerging markets can go down as well as up.

Trevor Keidan is managing director of Infinity Financial Solutions. Should you wish to contact Trevor send an email to tkeidan@infinsolutions.com.

0

Comments

Please, login or register to post a comment

Latest Video

Bodies of Cambodian peacekeepers returned to Kingdom

The bodies of four Cambodian peacekeepers killed by a Christian militia in Central African Republic were repatriated to the Kingdom and honoured in an airport ceremony on May 21.

Phnom Penh eats: Ptas Nak Battambang

As the name suggests, Ptsa Nak Battambang – which in English means Battambang's house – is the right place for those who want to try some of the province's typical dishes in Phnom Penh.

Opposition leader Kem Sokha speaks at a CNRP campaign rally today in Kratie province. Facebook

Opposition president Kem Sokha assured voters that all military members would maintain their rank should the CNRP take power in the 2018 national e

Political analyst Kim Sok who is seen being escorted into a police van after his bail was denied in March at the Appeals Court in Phnom Penh, announced that he will go on hunger strike in Prey Say prison from today until the June 4 commune elections.

Imprisoned political analyst and social commentator