Macquarie Research, Weekly Fund Flow Tracker -Buyers back to Northeast Asia

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Weekly Fund Flow Tracker
Buyers back to Northeast Asia
Local exchange data: Investors return to Korea, Thailand
 Foreign net-selling in Asia ex-Japan eased WoW. Net-selling for the
aggregate of the of six Asian ex-Japan markets where high-frequency data is
available (i.e. Korea, Taiwan, India, Thailand, Indonesia and the Philippines)
substantially eased to -US$453m for the week ending Wed. 23 March
compared to the -US$2.8bn net-outflows recorded the week before. Korea
and Thailand both recorded net-positive foreign buying (US$590m and
US$6.3m, respectively, compared with last week’s net selling of -US$1.66 bn
and -US$2.4m). The level of outflows sustained WoW for Taiwan and
Indonesia (-US$944m and -US$46m, respectively), while India fell back to
net-selling of -US$48m after net-buying of US$77m the week before.
 Latest data suggests net-buying rebound. Yesterday’s daily data point (not
reflected in our Thur-Wed ‘data week’) shows that Korea, Taiwan, Indonesia
and Thailand all recorded net-positive buying on Thursday, 24 March.
 Foreign net-selling in frontier markets reflects further risk aversion.
Each of the three frontier markets where high-frequency data is available (i.e.
Vietnam, Pakistan, and Sri-Lanka) were net-sold -- by a combined -S$31.5m,
versus –US$14m the week before.
Fund subscription data: Opportunism in Northeast Asia
 Global Emerging Market funds received further net-redemptions. Weekly
net-redemptions at the GEM-funds sustained (-US$866m vs. the previous
week’s -US$769m), raising the cumulative net-redemptions to -US$15.9bn
since the January 19 peak -- equivalent to fully 26% of the cumulative netsubscriptions
since January 2010.
 Emerging Asia: Net-subscriptions at selective country-dedicated funds
suggest opportunism. Asia ex-Japan regional funds also continued
receiving weekly net-redemptions (of -US$1.18bn, double the previous week’s
-US$559m and YTD average of -US$526m). And while most single-country
funds received net-redemptions, net subscriptions were recorded by Greater
China-, Korea-, Taiwan-, and Vietnam-dedicated funds. Indeed, year-to-date
cumulative net-subscriptions are still evident in Korea-, Hong Kong-, Taiwan-,
Philippine-, and Vietnam-dedicated funds.
 Developed Asia: Continued net-subscriptions at Japan-dedicated funds.
In spite of Japan’s traumatic post-earthquake newsflow, weekly netsubscriptions
received at Japan-dedicated funds picked up to US$276m from
US$86m the week before, bringing the YTD cumulative net-subscriptions to
US$3.6bn. On the other hand, weekly net-redemptions from broader Asia-
Pacific funds (which combine Australia and New Zealand with Japan and
emerging Asia) intensified further, to -US$440m from -US$184m the week
before.