Foreign investors pull out $2.7 billion from emerging markets in one week: EPFR

Globally focused investors have pulled out $2.7 billion from emerging markets during the week ended 23 November as the European debt crisis worsened, data released by global fund-tracking agency EPFR showed.

This is the biggest weekly outflow from emerging market equity funds since early October, according to the agency.

This compares with total global equity market outflows of $15.6 billion for the week ended 23 November and $100 billion for the year 2011 so far.

The reverse flow of funds from emerging markets to developed country markets since the beginning of the current year (2011) now stand at $39.9 billion, EPFR said.

''Emerging market equity fund groups and sub-groups struggled in the face of the headwinds flowing out of developed Europe during the third week of November,'' it noted.

Although India-specific data is not available on the EPFR release, data provided by the Securities Exchange Board of India (SEBI) show that foreign institutional investors have pulled out $624 million from the Indian market during the week.