Emerging market stocks are experiencing the largest displacement in 4 years

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Data from the “EBFR” reported that investors withdrew $ 7.4 billion from emerging market equity funds in the last week, which is the largest weekly pace in more than four years, which is partly due to the collapse in oil prices.
The data showed that outflows from emerging market bond funds amounted to $ 721.6 million in the week ending Wednesday, raising the total net exits over the past eight weeks to more than $ 54 billion.
For emerging market equity funds, this was the 10th consecutive week of inflows, with a total of $ 25.5 billion in that period.
“A sharp fall in oil prices has hurt investor sentiment towards this category of assets,” said EFPR, from emerging fund markets, adding that last week’s exits were the largest since the third quarter of 2015.
Funds focused on South African stocks have extended their longest influx since the early second half of last year. But that was overshadowed by exits from funds focused on oil producers, including Saudi Arabia and Russia.
On the sovereign level, the bond funds that focus on Turkey recorded their largest inflows in more than four years and poured “new funds in good quantities” into South African bond funds.
Globally, EPFR said more than $ 126 billion has been poured into money market funds.

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