Portfolio flows to emerging markets estimated at $13.8B in May

By Tuba Sahin

ANKARA (AA) – Emerging markets’ securities attracted around $13.8 billion in May, the Institute of International Finance (IIF) revealed in its latest estimate on late Tuesday.

The global financial institution stressed that new lockdowns are limiting a wide and lasting snapback while many see renewed hope with partial opening of their activities.

"The buildup of inflationary pressures across the market have hurt the outlook – especially on equities – and put the focus on the response of policymakers," it said.

The dynamic of emerging market flows was mainly supported by debt flows, accounting for $9.8 billion of the main reading, it noted. Equity inflows reached $4 billion last year.

The top performer was Latin America with $6.2 billion inflow. Emerging markets Europe and Africa/Middle East got $6.5 billion inflow, while Asia suffered a net outflow of $500 million.