Co-Movements between Developed and Africa's Frontier Stock Markets

It has been widely noted that as the world becomes more connected the movements of the Developed and the main Emerging Stock Markets of the world are getting closer over time. This co-movement of the world s developed and emerging markets reduces the benefit that could be obtained from diversification across more than one national market. The key question for international investors who are seeking higher returns and less volatility in their portfolios is whether diversifying into the smaller, less liquid Frontier Emerging Markets, simply known as Frontier Markets, would provide the needed variation in equity price movements. This book seeks to answer this question by investigating the degree of correlation in the movements of the equity prices of Frontier African Stock Markets with those of the Developed Stock Markets of the world.

Autorentext

Kamanda Morara is the Executive Director at Ashanti Research Limited, an Africa-focused buy-side investment research company based in Nairobi, Kenya.He holds a First Class Honours Degree in Financial Services from Edinburgh Napier University, Scotland and is a Fellow of the Association of Chartered Certified Accountants.