elef Posted June 22, 2008 Report Share Posted June 22, 2008 Bangkok Post Today Link Foreigners cash out Singapore - A new report by Citigroup blames rising inflation and fears stagnation have triggered a flight of foreign funds out of regional markets - although Thailand is still a net gainer. China has taken the biggest hit, the finance house said on Saturday, with the funds offloading $2.78 billion worth of mainland shares between January and mid-June this year. Foreign fund managers have sold about $4.6 billion in Asian equities, nearly double the $2.48 billion they invested during the corresponding period of 2007, the report said. But the data was not all grim. Taiwan emerged with $2.1 billion from foreign funds this year, Thailand is still $109.1 million in the black, India $34 million and Indonesia $11 million, the report said. "For the first time since the 1997-98 Asian crisis, Asia is in a sell-off mode, inspired by developments taking place in its very neighbourhood, namely energy-driven inflation," the Straits Times quoted Merrill Lynch strategist Mark Matthews as saying. Foreign fund managers sold $254 million in Malaysian equities, compared to $1.1 billion pumped in last year, the report said. The city-state is another underperformer, with $229.8 million worth of equities sold this year compared with the $1.1 billion fund flow into Singapore equities last year. "Whether you are selling coiled steel or cut flowers, the cost of transport is a problem," Matthews told the newspaper. "You have to ask whether it still makes sense to ship stuff from China when the price of a sea voyage from Shanghai represents half of the value of the product." He expressed hopes that high oil prices will encourage Asian manufacturers to embark on more cost-cutting in order to survive and get more market share. (dpa) Link to comment Share on other sites More sharing options...
Dexi Posted June 22, 2008 Report Share Posted June 22, 2008 Chinese economy still looks a better option for investment than US/UK (5-10 % est. growth compared with recession or 1-2 % at best for western economies )... Link to comment Share on other sites More sharing options...
zzzz Posted June 22, 2008 Report Share Posted June 22, 2008 Things look bleak near term. I'm mostly in cash at the moment and plan on getting back into stocks in Oct. Last month. my broker (Just2trade) had to freeze all accounts (including mine) for SEC violationd by its clearing house. buy they got it all straightened out or at least that's my understanding. Link to comment Share on other sites More sharing options...
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