WASHINGTON, D.C., June 20 -- The International
Finance Corporation (IFC) announced today that it will add 17 new markets
to its coverage of emerging stock markets. Heading the list of countries
to be added are Egypt, Morocco, and Russia. These three countries will
be added to the daily index series starting September 30th, 1996.
Another 14 countries will be added to IFC's monthly index series. These
"frontier" markets include:
Trinidad & Tobago
The addition of these 17 countries brings to 44 the total number of emerging
markets covered by IFC.
According to IFC's EVP Jannik Lindbaek, " The role of emerging stock
markets in the world economy has been expanding rapidly. I am particularly
pleased by the expansion of the EMDB database to these additional countries
in recognition of the growing importance of their markets. The inclusion
in the daily index of Russia, Egypt and Morocco demonstrates the progress
of economic reform in these countries. It is equally encouraging that the
IFC's pioneering database has been able to add frontier markets from all
regions. The addition of several new African markets reflects the important
steps that have been taken in many African countries to encourage private
sector investment, and the new interest in investment opportunities in
Coverage of Central and Eastern Europe has now been greatly expanded. The
IFC indexes already cover three countries in Eastern Europe: the Czech
Republic, Hungary, and Poland. Some of this year's best gains have been
in these three stock markets. The IFC Investable index for the Czech Republic
is up 22% in US$ terms for the year. For Hungary, the IFC index is up 73%,
and for Poland, the index is up 60%. The new coverage in Eastern Europe
will bring to eight the number of countries in the region for which IFC
calculates its indices.
The three countries to be added to the daily series will initially be included
in the IFC Global index series. They will feature in the IFC Global Composite
Index in January, 1997. A decision on listing these countries in the Investable
index series will be taken at a later date.
A new extended global index incorporating the 14 frontier markets will
also be calculated.
Details on the index constituents for each of the 17 new countries will
be released closer to the launch date for the new IFC indexes.
IFC coverage provides reliable, comprehensive and the widest available
statistics on emerging stock markets' performance. It aims to meet the
needs of global investors and to stimulate the flow of private capital
to emerging markets.
IFC is a member of the World Bank Group and is the leading multilateral
source of equity and loan financing for private sector projects in developing
countries. It is also the world's leading publisher of data on stock markets
in developing countries.