{"id":265583,"date":"2018-08-16T16:12:43","date_gmt":"2018-08-16T14:12:43","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=265583"},"modified":"2018-08-16T16:12:43","modified_gmt":"2018-08-16T14:12:43","slug":"how-much-money-investors-pulled-out-of-south-africa-this-week","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/265583\/how-much-money-investors-pulled-out-of-south-africa-this-week\/","title":{"rendered":"How much money investors pulled out of South Africa this week"},"content":{"rendered":"<p>Investors rattled by events in Turkey, China and South Africa have pulled $1.3 billion out of emerging-market stocks in the last week and $100 million from bonds, according to a report by <strong><a href=\"https:\/\/www.reuters.com\/article\/us-emergain-markets-flows\/spooked-investors-pulled-1-4-billion-emerging-markets-in-last-week-iif-idUSKBN1L11KZ?il=0\">Reuters<\/a><\/strong>.<\/p>\n<p>Citing the Institute of International Finance which tracks financial flows, Reuters said that the exodus of investment money this week has largely been concentrated in South Africa and China &#8211; amounting to $600 million (<strong>R8.7 billion<\/strong>) and $500 billion, respectively.<\/p>\n<p>However, India has also turned negative this week as debt flows reversed, and Malaysia, Indonesia, Korea, Philippines, Korea and Vietnam have all seen money leave, albeit at moderate pace.<\/p>\n<p>\u201cTurbulence, amid heightened tensions between the U.S. and Turkey, has clearly weighed on investor appetitive for emerging market assets,\u201d the IIF said in a new report.<\/p>\n<p>South Africa\u2019s reliance on portfolio debt and equity flows to finance its large and widening current account deficit has amplified its moves, it added.<\/p>\n<p>Nearly 80% of foreign investor flows to South Africa since 2015 have been in the form of portfolio investment \u2014 buying assets like bonds or shares. Direct investment, such as building a factory, accounted for less than 10 percent of total inflows.<\/p>\n<p>&#8220;The impact of market strains is likely to be most acute for countries with relatively large external financing needs,&#8221; the IIF said.<\/p>\n<p>At 16:00 on Thursday (16 August), the rand was trading at R14.50 to the dollar.<\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/wealth\/265423\/how-much-money-it-takes-to-be-considered-rich\/\" target=\"_blank\" rel=\"noopener\">How much money it takes to be considered rich<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors rattled by events in Turkey, China and South Africa have pulled $1.3 billion out of emerging-market stocks in the last week and $100 million from bonds.<\/p>\n","protected":false},"author":10,"featured_media":114834,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-265583","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=265583"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265583\/revisions"}],"predecessor-version":[{"id":265613,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265583\/revisions\/265613"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/114834"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=265583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=265583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=265583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}