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

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 [email protected].

MOST VIEWED

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • Deminers unearth ancient lion statue

    Cambodia Mine Action Centre (CMAC) director-general Heng Ratana told The Post on Tuesday that a statue of a lion was found by mine clearance experts while they were digging for a development project. It was sent to the Ministry of Culture and Fine Arts last