E Markets Review: A Warning

*Another fund which is holding up well is highly-diversified Templeton Emerging Markets Income Fund, TEI. I have no current data on its India risk but some of those buying it may know more.

*Our Morgan Stanley Institutional Frontier Markets fund (now open-ended and not in the model portfolio, but purchased as a closed-end fund a decade ago) closed June with zero investments in India. The fund is now controlled by institutional shareholders who own 45% of the shares out, and we just go along for the ride.

*Our Western Assets Emerging Markets Debt Fund, EMD, also had minuscule (o.6% of assets) in Indian holdings at end June. It sold its rupee, forward currency contracts to JP Morgan Chase for dollars at a gain! However, it still had some un-tradable Venezuela paper.

*Nor did our SPDR FTSE International Government Inflation-Protected Bond ETF hold any rupee issues at end June. WIP did hold Turkish lire.

*Infosys which is largely held outside India, was a riser last week. It was up 1.3%. INFY launched an automation platform for students and indie developers.

*Insiders have been selling US-listed India software firm Cognizant Tech, CTSH.

Tech & Tel

*Hong Kong's Tencent continued its drop. TCEHY lost 1.11% on news it had acquired a minority stake in the tech financing sub of Philippines Long Distance Telephone alongside KKR of the US, presumably for investment purposes rather than hacking because Manila populists would not put up with leaks of voice and internet content. The big negative for TCEHY is the moves against its video gaming, banking, and chat prowess inside China, which force it to diversify into PLD

*Last week's Financial Times cheered on Japanese stocks for aging consumers and ones aimed at replacing labor with machines and tipped robotics firm Fanuc. FANUY fell.

*It tipped telco NTT Docomo, and DCMYY also fell.

*It tipped Eisai, ESALY, which also fell.

*But young Japan stock Nintendo (NTDOY, which admittedly is global in scope) rose 1.7%.

*Chinese railway robotics maker Hollysys is up. HOLI.

*Israeli chipmaker Tower Semiconductor is down, tainted with reports of Chinese trojan chips unlike to have been used by TSEM.

*Nokia of Finland is using Pixelworks chips in its new smartphone 7.1 line which boosted PXLW if not NOK, allowing it to combine 4th generation Iris processing with Qualcomm 636 apps. NOK fell 2.5%.


*Novo Nordisk, the Danish insulin powerhouse, faces competition from Eli Lilly and Roche's hemlibre. NVO was downrated by HSBC analysts. Its share rose 1.7%.

*RHHBY of Switzerland gained only 0.18% despite buying into a bispecific antibody from GO Therapeutics.

*This may involve an overlap with bispecific antibodies from Zymeworks of Canada. ZYME lost 5.1% in the US, last week on Saturday.

*GlaxoSmithKline backed US-UK biotech startup Orchard did funding round to raise $150 m which will fund its trials of gene therapy assets it bought from GSK, including Strimvalis to treat a rare immune disease, adenosine deaminase severely combined immunodeficiency, already on the market in the EU, and other genetic diseases like beta thalassemia, Wiskott-Aldrich syndrome, and metachromatic leukodystrophy for which there is no treatment. GSK owns 19.5% of Orchard which helped it overcome a warning by the European Medical Authority that old HIV drug dolutegravir (Tivikay) is being overprescribed.

*Israeli BiolineRX dropped nearly 2.1% a week ago when Tel Aviv was closed. Its oddball takeover has finally scared people.

View single page >> |

Disclosure: None. Subscribe to Global-Investing for more updates.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.
William K. 11 months ago Member's comment

The solution for the greed challenge is NOT to eliminate greed but rather to regulate it quite severely so that it is not able to do any serious damage. simply demanding that petroleum futures could only be purchased with cash, not borrowed credit, would have eliminated a lot of problems. Tighter regulation is the solution, not letting greed run rampant and out of control. Certainly there would be less profit for some, but far better that than disaster for many. ( I am well aware that such sound rather altruistic. Oh Well!)