Emerging Markets Weekly News

Week ended 14 June 2013

Brazil: The Supreme Court has reportedly rejected Petrobras’ request to suspend backtaxes from more than a decade ago. The company said it would appeal the court’s decision. India: Three lenders, including our holdings, ICICI and HDFC Bank, faced a minimal fi ne from the central bank for not adhering strictly to anti-money laundering and customer transparency guidelines.

Korea: Speculation over government initiatives to improve corporate transparency resulted in the unexpected resignation of BS Financial Group Chairman Lee Jang-Ho. Elsewhere, E-Mart’s margins grew in May as its effi ciency measures offset weaker revenues due to government regulations.

Mexico: Banorte announced it had bought out Generali’s 49% stake in the Banorte-Generali insurance and pension joint venture. The company also reported a US$3 billion capital increase via a share issue later this year. Both announcements were anticipated by the market.

Russia: Magnit reported accelerating top-line growth in its May trading update. Elsewhere, Lukoil acquired a 65% interest in a Cote d’Ivoire project and was also awarded a stake in two exploration licences for the Norwegian shelf.

Thailand: Shareholders of convenience store operator CP All approved the acquisition of a 64% stake in Siam Makro, paving the way for a full takeover of the company, which is valued at 189 billion baht. Meanwhile, BEC World’s prospects look encouraging given TV ad spending grew 1.9% year-on-year despite a weak environment.

We hold all the above companies highlighted.