Photo: Flickr / Ahron de Leeuw
2010 was a banner year for so-called “frontier markets,” those countries that are still too undeveloped to be considered emerging. Mongolia, for example, had the best performing market of the year.Bangladesh also had a monster year, with stocks gaining 80%, but already that’s reversing violently.
The BBC reports that there were violent riots out of th Dhaka Stock Exchange, after shares fell over 9% in one hour, representing the biggest fall in the exchange’s 55-year history.
Shares speculation has evidently become popular among the public, and apparently selling from one big institutional investors has accelerated dumping that began in earnest in December.
Meanwhile, it was another brutal market for Indian stocks, with Bombay tanking again on Monday.