Emerging markets see nine-fold jump in capital inflows in June – The National

Emerging markets see nine-fold jump in capital inflows in June – The National

Flows to emerging markets rose to $32.1bn last month, the Institute of International Finance says

















People wearing face masks wait to show the results of a smartphone health check app before they enter a mall in Beijing. Capital flows to emerging markets securities jumped more than nine-fold in June to $32.1 billion as country's eased lockdowns. AP







Capital flows to emerging markets securities jumped more than nine-fold in June to $32.1 billion (Dh117.8bn), up from $3.5bn in May, according to the Institute of International Finance (IIF).



"Negative sentiment on emerging markets approached extreme levels during March, setting the stage for a period of stabilisation and more two-way discussions on risks and opportunities in the EM space," Jonathan Fortun, economist at IIF, said in the institute's latest Capital Flows Tracker report.



Debt flows represented $23.5bn of the total, according to IIF data on non-resident portfolio flows to emerging markets.



"Debt flows continued their recovery, at a healthy pace... on the equity side, the negative trend which we observed last month was reversed," Mr Fortun said.



Equity inflows amounted to $9.5bn last month, the report said.



Reversing an outflow trend,