Frontier markets?

[tothemax6]

Hi,
I was interested if anyone hear does any investing in the so called 'frontier' markets? As I understand it, these are the exotic markets that are not typically invested in by foreigners (e.g. Mongolia, Sri Lanka, Estonia etc). This is characterized as difficult, with high, long-term returns, in markets which are small and with hence with low liquidity.
Not something I would (or could) do myself, but it would be interesting to hear of other peoples opinions on or involvement in this.
Cheers!

 

[tothemax6]

No one? Yeah I have no idea how anyone would even go about investing in somewhere like Mongolia. 'I own shares in mongolian camel farms' probably doesn't get said much .

 

[MARKETWINNER]

Some funds are active in Asian frontier markets and some funds are active in African Frontier markets now. For example Leopard Capital manages investment funds in overlooked frontiers. Leopard has invested in countries such as Bangladesh, Sri-Lanka, Vietnam and few other frontier markets.

Mark Mobius is bullish on frontier markets such as in Asia (Bangladesh and Sri-Lanka).Africa and East Europe. We can see foreign inflows in frontier markets such as Bangladesh and Sri-Lanka. I did some study on Sri-Lankan market and I can clearly see foreign inflows to stocks such as banking, diversified and tea stocks. For example according to following link foreigners have bought stocks such as tea stocks, bank related and motor vehicle related stocks in the Colombo stock exchange.

http://lk.duinvest.com/mubasherFile...sh_Reports/DUInvest SWOT Report 04th June.pdf

http://www.leopardasia.com/media/do...Leopard_Wins_Acquisition_Fund_of_the_Year.pdf

My ideas are not a recommendation to either buy or sell any security or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked site.

 

[MARKETWINNER]

During May we saw strong foreign inflow and rally in frontier markets such as Pakistan, Sri-Lanka, Vietnam and Bangladesh.

Both Sri-Lankan and Bangladesh markets had a recovery and their indexes are rising gradually having some short term vibrations time to time. During last couple of weeks we saw foreign inflow in food and beverages (including tea and tea related stocks), diversified, banking, and pharmaceutical etc in countries such as Sri-Lanka and Bangladesh.

In some frontier markets still we cannot see much developed infrastructures facilities.
However we can see improvement in some areas and some sectors are very attractive now. There are multinationals companies such as NEST and Unilever in these frontier markets in addition well managed locally grown companies.

Increased population in these frontier countries in the future will eat more meat, rice, other grain and will drink more tea, milk and coffee in the coming decade. Their availability of arable land will go down further due to economic activities. More people will use internet, mobile phones, IPods and lap top etc.

In short different frontier markets will have different opportunities. Some countries will have different types of commodities such as spice commodities and emerging commodities.

http://www.forbes.com/sites/kitcone...in-solid-long-term-investment-northern-trust/

Emerging, Frontier Markets Remain Solid Long-Term Investment -- Northern Trust

My ideas are not a recommendation to either buy or sell any security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked site.

 

[MARKETWINNER]

I saw following link about frontier markets. Frontier markets, or "pre-emerging" markets, are gaining attention from investors worldwide now.

While these markets are still in their early stages of development, some investors consider them an attractive opportunity with strong return potential. After the rapid growth and development of emerging markets inthe late 20th century, frontier markets may be at a stage where similar investment opportunities are available.

http://www.investordaily.com.au/33645-frontier-value-underestimated-by-investors

Frontier value under estimated by investors

My ideas are not a recommendation to either buy or sell any security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked site.

 

[MARKETWINNER]

http://www.reuters.com/article/2013/07/12/kenya-markets-idUSL6N0FI2D420130712

UPDATE 1-Kenyan shares hit 4-week high as foreign investors return

 

[MARKETWINNER]

http://www.fundweb.co.uk/fund-strat...-right-for-a-frontier-assault/1074061.article

Time is right for a frontier assault

 

[TraderTactics]

Hi,
I was interested if anyone hear does any investing in the so called 'frontier' markets? As I understand it, these are the exotic markets that are not typically invested in by foreigners (e.g. Mongolia, Sri Lanka, Estonia etc). This is characterized as difficult, with high, long-term returns, in markets which are small and with hence with low liquidity.
Not something I would (or could) do myself, but it would be interesting to hear of other peoples opinions on or involvement in this.
Cheers!

Hello,

As a trader in the Philippines, you can invest in large companies here. The market here is liquid and blue chip stocks can even be day-traded. Right now, the Philippine market has a strong macro-fundamentals and is experiencing growth from a low interest environment, cash-rich banks, young working demographic, and fiscal stimulus from the government. Although the market is expensive as compared to its peers, the country has a good growth with most large companies experiencing at least 10-15% earnings growth per year.