Friday, July 18, 2008

Indian Markets Like Water Sloshing In The Tub

DNA - Money - India funds see $944m redemptions - Daily News & Analysis

It’s the fastest in the world in a month, & twice Chinese outflows

MUMBAI: The speed at which they are fleeing, investors in Indian
markets could give sprinters at the Beijing Olympics a run for their,
er, medals.

India-dedicated funds have seen $944 million outflows
in the month to July 9, the highest redemption faced by any
country-specific funds group in the period, according to EPFR Global

According to EPFR Global, billions of dollars of outflows from
offshore Asian funds have been going on for five weeks in a row and
reached $1.8b in the week ended July
9.Comparing this with the
size of weekly redemptions between mid-December and late February, the
average outflow of $1.5 billion in the last five weeks is 48% bigger.
Asia Pacific analysts Elaine Chu, Markus Rosgen and Brian Li said with
Asian stocks underperforming world equities by 955 basis points year to
date, net outflows from Asian funds have risen to $13.2 billion so far
this year.

“Alternatively speaking, 80% of new money taken in last year is now redeemed,” they said in a strategy note on Monday.

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