World's Most Popular and Unpopular Stock Investment Targets in Q1-2014
As the first quarter of 2014 ended last week, it is interesting to take a quick look at which countries were the most popular and unpopular investment targets of international investors in terms of stock trading. Indonesia has been 'hot' so far in 2014, with both its benchmark stock index and the rupiah strengthening considerably. Not far after Indonesia come the indices of Vietnam and Portugal. But the winners of the first quarter were Dubai and Bulgary where the benchmark stock indices gained 32.3 percent and 22.2 percent respectively in Q1-2014.
Indonesia's benchmark Jakarta Composite Index has been one of the world's best performing indices in 2014 as the country's economic fundamentals have improved, evidenced by easing inflation, a moderating current account deficit and an appreciating rupiah exchange rate. After having been hit hard by capital outflows in 2013 - amid heightened uncertainty about the future of the Federal Reserve's quantitative easing program - the tables have turned for Indonesia in the first quarter of 2014.
The table below shows the five winners in terms of stock trading in Q1-2014. Please note that the percentage growth figures are adjusted to local currency appreciation/depreciation.
Index | Country | Growth % |
Dubai Financial Market General Index | United Arab Emirates | +32.3% |
SOFIX Index | Bulgary | +22.2% |
Jakarta Composite Index | Indonesia | +19.2% |
Vietnam Ho Chi Minh Stock Index | Vietnam | +17.4% |
PSI 20 Index | Portugal | +16.0% |
Source: Financieele Dagblad
Meanwhile, geopolitical tensions in Crimea resulted in significant losses for the indices of Russia and Ukraine. Other indices that performed poorly in the first quarter of 2014 were those in Latvia, Peru and Nigeria:
Index | Country |
Growth % |
Ukraine PFTS Index | Ukraine | -18.7% |
MICEX Index | Russia | -14.9% |
OMX Riga Index | Latvia | -9.6% |
Bolsa de Valores de Lima G. Sector Index | Peru | -9.5% |
Nigerian Stock Exchange All Share Index | Nigeria | -8.9% |
Source: Financieele Dagblad