Russia, India and Brazil will be the most attractive countries for investors among the developing economies in 2017. This year, investors’ attention will be focused on countries where there is an improvement of the political climate and where the markets are less vulnerable to external factors, such as the inauguration of Donald Trump and Federal Reserve policy.
On first place among emerging markets is Russia. For investors who rely on low interest rates and buying government securities, the ruble has great potential. According to the analysts the Russian national currency has the potential to recover 26% of its value over the next 12 months, as the local economy may receive an additional positive boost from more expensive oil.
In Brazil, shares of Petrobras are still cheap, but analysts have forecast that the company will be able to restore its operations this year.
India will become attractive against the threats of the newly elected US president to restore the protectionist policies of the US economy. In November the country were withdrawn banknotes with a face value of 500 and 1000 rupees, which caused currency crisis and sharp drop in GDP. The measure was announced, as needed to fight corruption, but it may suggest to slow the economy and reduce interest rates, which would be attractive to investors in government securities.
Among the most popular destinations for investors also ranks Mexico, which will be one of the most attractive countries in the region, mainly because of the low value of the peso. Chile is also part from the investment heavens due to higher copper prices and expectations for more favorable measures for investors to local authorities after the presidential elections in the country after 2017.
For South Africa is expected that the weakening power of the President Jacob Zuma will make shares and securities on the local stock exchange more attractive for investors.
Indonesia does attract investors with dominant companies on the stock exchange, focused on the domestic market. The mining companies will benefit from the soaring prices of nickel and coal, and it will be interesting for investment.