Despite overall strong performance during the month of May, we continue to believe that generally African and MENA markets remain significantly undervalued, especially as they have lagged the recent stellar performance posted in the Brazilian, Russian, Indian and Chinese stock markets (BRICs).
When considered that most economies in our region continue to boast healthy economic growth, backed by high reserves and low debt levels ; it becomes increasingly hard to justify that many of the listed companies in these markets remain valued at the current low PE levels; many of which are even trading at lower single digit ratios!
As PE ratios often remain at less than half of the level the previous year, it is becoming increasingly clear that the recent sell off had more to do with negative sentiment rather than with economic fundamentals. It is therefore that we strongly believe that these markets will very soon catch up with their bigger brothers, the BRICs – especially now that we have started seeing the first little signs of what could be the beginning of foreign investors moving back into the Africa and MENA markets again.
I hope you can take a moment to read the reports below. Apart from an update on the funds, they are also intended as an overview of what is going on in the Africa and MENA regions.
There is clearly a level of activity and positive outlook in these markets that we have been missing very badly in Europe and the US lately!
Take a look at our Monthly update African Lions Fund and our Monthly update Arab Falcons Fund.
For more information about us, please visit our website: www.silkinvest.com. Please let us know if you would like to further discuss all this with us in more details. We’ll be coming to your town soon.
Kind regards
Baldwin
Baldwin Berges
Silk Invest Limited
4 Lombard Street – London EC3V 9HD – United Kingdom -
+44 7772 460768
+32 474 792057
www.silkinvest.com
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