The South African ZAR breaks to 4yr lows as banking sector under pressure and threat of rate cuts comes as inflation plummets for this commodity dependent economy.
Coca Cola – Hellenic Bottling Company (HBC) acknowledge some issues/risk doing business in emerging markets in a statement to investors. Specifically Coca Cola indicated the risk in doing business in Russia is now at the same level of risk as in Nigeria.
The Gold price and the share prices of gold miners have been under heavy pressure, with miners in a deep, deep funk. Let’s discuss.
The South African rand is now at 45-month lows with a hard sharp move in ZAR in the last hour, which is now -1.25%. Local bonds are being sold off hard.
The hottest sector for three years in South Africa — retail — has been taken out and beaten in 2013. Beaten hard! We highlight this because it is worth doing some work and making a call as the market has had a large move.
It comes as no surprise that performance results year-to-date from the Middle East and North Africa are mixed. While countries within the two regions are either involved in or affected by military and political conflicts, terrorist activities and volatile oil and natural resource markets there is room for optimism.
While Monday’s risk on reversal has pumped the brakes on the resurgent U.S. dollar, the technicals suggest that it is not all “rainbows and unicorns” for several emerging money currencies.
Emerging markets have been one the best places for market participants to find investment opportunities in equities, especially in the retail and banking sectors. In particular in South Africa (EZA, quote), firms in these industries have historically been bullet proof; however, recently, shares in these firms have been adversely affected by social unrest in the country.