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Growing need to lure FDI

December 11 2008

In the current market conditions, all the countries aspire to attract as much as FDI they can. One of the main aspects is foreign investments in the stock markets. Dr. Gil Feiler, CEO of Info Prod Research and author of Investing in Russia and Rethinking Business Strategy for the EIU, has recently conducted a research into the current efforts in various countries.

 

According to the data he compiled, foreigners dumped a net 399.7 billion yen worth of Japan-based stocks for the week of November 30 to December 6. Foreigners were also sellers of a net 84.5 billion yen in Japanese bonds and notes. In Thailand, foreigners were net buyers of stocks for the first time in seven trading days. In Taiwan, foreigners bought more stocks than they sold. Additionally, foreigners sold a net $1.2 billion in Israeli stocks and bonds in October, more than double the previous month\'s level of $535 million. In Vietnam, foreigners Wednesday turned net buyers for the first time this month, pumping VND41.6 billion (US$2.4 million) into the market. For instance, in Seoul foreigners last month snapped up a net 343.9 billion won worth of local stocks on the Seoul bourse.

Foreign investors pulled money from Brazil’s stock exchange for a sixth straight month in November, the longest streak in almost eight years, as redemptions and increased risk aversion forced funds to sell stocks. Investors sold 1.16 billion reais ($481 million) more than they bought in stocks last month, BM&FBovespa SA said in a statement posted on its Web site. That brings the total for 2008 to 24.2 billion reais during the longest streak of outflows since December 2000. According to Feiler, due to the situation, Russia has even considered opening up strategic sectors to foreign investment. For example, Gazprom Neft may let foreigners in Arctic oil field.  

 
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