Investors remove $7.3 bln from emerging markets

Investors removed $7.3 billion from the markets of the developing countries last week, up tenfold from the previous week, Kommersant reported with reference to data from the Bank of America.

This figure is the record high since late August 2015. About $25 billion has been removed from the markets since mid-February.

Avoidance from the risky assets emerged after the coronavirus outbreak. Analysts expect a greater recession than 2008. At the same time, the decline in oil prices last week also got on investors’ nerves. General partner of the FP Wealth Solutions Alexander Varyushkin said that the negative dynamics of the oil affected the risky assets market, as well as developing countries’ markets. Because most of them are oil exporters. Bank of America said that the decline in oil price increased the risk of payment ability for developing countries.

During the last week, the investors remove $40 million from Russian stock exchanges, $1.4 billion from China, $253 million from India, and $32 million from Brazil.