Latest news with #foreignoutflows
Bloomberg
6 days ago
- Business
- Bloomberg
Indonesian Stocks Near Record High, Unfazed by Foreign Selling
Indonesian stocks are closing in on an all-time high as booming domestic demand offsets a deluge of foreign outflows. Foreign investors have sold a net $3.8 billion in local shares so far this year, on track for their largest annual outflow ever, according to Bloomberg-compiled data. Despite the exodus, the Jakarta Composite Index has rallied 26% from an April low and is approaching its record high set in September.
Reuters
01-08-2025
- Business
- Reuters
Rupee steadies to cap rough week dominated by Trump's tariff jolt
MUMBAI, Aug 1 (Reuters) - The Indian rupee nudged higher on Friday, supported by likely intervention from the Reserve Bank of India, but still logged its worst weekly drop since late 2022 due to worries over U.S. tariffs and sustained foreign portfolio outflows. The rupee closed at 87.54 against the U.S. dollar on Friday, a tad higher than its close at 87.5950 in the previous session. On the week, the currency declined 1.2%, its worst performance since December 2022. The South-Asian currency fell to 87.74 on Thursday, just shy of its all-time low of 87.95 in February, following President Donald Trump's announcement of a steeper-than-expected 25% tariff on Indian imports. Firm intervention by the central bank on Friday helped the rupee find some footing, but traders and analysts expect a depreciation bias in the near term. Consistent foreign outflows from local stocks alongside elevated corporate dollar demand are likely to keep the local currency under pressure, traders said. Foreign investors net sold $2 billion of Indian equities in July. India's equity benchmarks, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab were lower on the day and logged their fifth consecutive weekly fall. Meanwhile, Asian currencies fell after the U.S. imposed sweeping new tariffs on dozens of trading partners. The Korean won led losses with a near 1% fall. The Reserve Bank of India's monetary policy decision and developments related to U.S. trade tariffs will be the key drivers for the rupee next week. "The market now firmly believes that tariffs are transactional rather than ideological," ING said in a note. "Perhaps the biggest risk now is that of secondary sanctions on the likes of China, India and Turkey as Washington tries to turn the screws on Russia and those buying its cheap oil," the brokerage added. The dollar index was up 0.1% at 100.1, as investors await key U.S. labour market data later on Friday to gauge the future path of policy rates in the world's largest economy.
Reuters
21-05-2025
- Business
- Reuters
Indian equity benchmarks may open higher; foreign flow jitters to cap gains
May 21 (Reuters) - India's equity benchmark indexes are likely to open higher on Wednesday, rebounding from a 1% drop in the previous session, but concerns over foreign outflows may keep gains capped. Gift Nifty futures were trading at 24,802 as of 8:01 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open above its previous close of 24,683.9. The Nifty 50 and the BSE Sensex (.BSESN), opens new tab slipped on Tuesday as foreign portfolio investors offloaded 100.2 billion rupees ($1.2 billion) of shares, as per provisional data, the biggest single-day outflow since February 28. Rising bond yields in the United States and Japan, and expensive valuations of Indian equities likely triggered foreign outflows, as per analysts. U.S. bond yields edged higher overnight on concerns that a tax-cut bill being debated in Congress will worsen the budget deficit, while long-dated Japanese government bond yields eased after hitting record highs on Tuesday amid concerns over funding for new fiscal stimulus. Indian equity benchmarks rose about 4% last week to seven-month highs. Market participants expect mutual funds to buy any dips in the market as they are sitting on a large cash pile. The cash holdings of mutual funds in equity schemes rose to 3.92% at the end of April from 3.57% a month earlier, as per PRIME Database Group. Domestic institutional investors bought 67.4 billion rupees of Indian shares on Tuesday. ** United Spirits ( opens new tab posts higher fourth-quarter profit on the back of strong demand for its premium alcohol brands and resumption of sales in the state of Andhra Pradesh in September after a five-year gap ** Ircon International ( opens new tab gets a letter of acceptance for an order worth 2.54 billion rupees from South Western Railway ** Dixon Technologies ( opens new tab posts four-fold jump in profit for January-to-March quarter as its revenue and operating profit doubled from a year earlier
Zawya
09-05-2025
- Business
- Zawya
Kenya: Regional conflicts, Trump's tariffs drive foreign investors out of NSE
Kenya's stock market is facing the risk of foreign outflows as a result of the escalating regional conflicts and the potential global trade wars triggered by the US tariffs, highlighting the sensitivity of deep-pocketed foreign investors to insecurity and political noise in frontier and emerging markets. The Capital Markets Authority (CMA) says in its latest quarterly market report (January-March) that insecurity in the Democratic Republic of Congo, South Sudan and Somalia is likely to harm the flow of investment capital to Nairobi. The regulator reckons that the volatile situation on the Nairobi Securities Exchange (NSE) is likely to be exacerbated by the contentious tariffs imposed by the US President Donald Trump as foreign investors sell their stocks in search of secure investment environments that are unlikely to be significantly affected by the proposed policy reforms in Washington DC.'Political instability in the Democratic Republic of Congo, South Sudan and Somalia is likely to have a negative spillover effect on the Kenyan domestic market by posing insecurity threats harming the flow of investment capital into Kenya,' the regulator says. Foreigners accounted for 38.24 percent of total market turnover in the first quarter of this year, down from 43.83 percent in the previous quarter (October-December) 2024, CMA data shows. During Q1 2025, the Nairobi bourse recorded a net foreign outflow of Ksh3.26 billion ($25.27 million) as foreign investors sold their shares in listed companies, compared with Ksh16.63 billion ($128.91 million) in Q4 2024.'The drop is attributed to investors seeking a secure investment environment that is unlikely to be significantly affected by the proposed policy reforms in the US,' CMA explains. The foreign participation in the equity market declined from 43.83 percent in Q4 2024 to 38.24 percent in Q1 2025. In January this year, foreign participation remained relatively strong at 46.22 percent, but dropped sharply to 31.03 percent in March, likely due to tariff pronouncements by President Trump. But the stock market registered a gain of 3.69 percent in the quarter, although it is a significant decline, compared with the 76.62 percent gain recorded in December 2024. According to the CMA, Kenya might experience spillover effects from political instability in neighbouring countries, and the US-China trade war is likely to fuel uncertainty in global trade, potentially leading to a global economic slowdown.'This will potentially spark a stock market rout, dampen investor sentiments leading to a slowdown in capital markets activity,' CMA notes. 'Further, with the short-term trade landscape remaining uncertain, corporations aiming to raise financing via the capital markets will pull back on their initial public offering (IPO) decisions as we head halfway into 2025.'CMA further notes that the persisting geopolitical conflicts and confrontations between Ukraine and Russia are a major concern. In mid-March, investors pulled out of global equity funds on lingering concerns about the impact of President Trump's aggressive trade policies on the global economy. Outflows from sector equity funds eased to a low of $178.7 million as inflows into industrials ($1.02 billion), and gold and precious metals funds ($485 million) partially offset net selling in most sectors. Across East Africa, at least 130,000 people have been displaced in South Sudan since fighting broke out between government troops and opposition forces, including the White Army, which is said to be supporting the opposition leader, First Vice-President Riek Machar. In Congo, fighting between Congolese security forces and militant groups led by M23 escalated in January, resulting in the capture of Goma, the regional hub of eastern DRC near the Rwanda border. In Somalia, terror attacks and clan conflicts are increasing as a result of disputes over land, water, and political power, displacing more than 250,000 people and killing more than 600 between January 2024 and February 2025. These conflicts are expected to persist in 2025, driven by unresolved land disputes, political rivalries, and climate-induced resource scarcity. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
