Street Calls of the Week
Investing.com -- South Africa recorded one of its strongest weekly equity inflows in many months, bucking a regional trend of slowing inflows across emerging markets.
The slowdown in equity inflows across most of the region came as the U.S. dollar reversed its weakness, driven by political concerns in Europe. While South Africa stood out with significant inflows, Saudi Arabia experienced the strongest outflows, likely due to profit-taking following a recent market rally.
Market analysts suggest there may be room for tactical weakness in emerging markets due to a possible near-term rebound in the U.S. dollar. However, the longer-term outlook remains positive for the region overall, particularly for Eastern Europe, Middle East, and Africa (EEMEA) equities.
The regional market outlook is expected to improve with anticipated renewed weakness in the U.S. dollar.
Among global emerging market funds, consumer discretionary remains the main overweight sector in EEMEA, while information technology is the main overweight across broader emerging markets. Communication services continues to be the main underweight sector in both emerging markets and EEMEA specifically.
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