A visitor looks at a digital screen displaying stock futures price information in the reception area of the Johannesburg Stock Exchange (JSE) in the Sandton district of Johannesburg, South Africa. (Photographer: Waldo Swiegers/Bloomberg)

South Africa Cheapest of Seven EM Stock Markets Worst Hit by Rout

(Bloomberg) -- The $4.5 trillion slump in emerging market equities has dealt the worst blow to South Africa, dragging the valuation of its benchmark index to the lowest level since the Taper Tantrum.

When national markets are compared with their own historical valuation levels, based on price as a multiple of projected earnings, Asia and Africa come out the worst after a sell-off that began in January pushed the developing world into a bear market. Money managers often cite South Africa as the most open and liquid emerging market, explaining why it tends to suffer the most in any rout.

The fast-growing economies of India and Philippines haven’t been spared either as they slipped to deeper lows. By this reckoning, most Latin American markets are relatively stable.



South AfricaJune 2013
PakistanOctober 2013
PhilippinesJanuary 2016
EgyptMarch 2016
TaiwanMay 2016
IndiaFebruary 2017
GreeceDecember 2017

©2018 Bloomberg L.P.