Emerging Market Stocks provide investors with the ability to access a greater pool of companies to choose from in a wider range of sectors across the globe.
Fund managers frequently use emerging market exposure to seek attractive opportunities that may not be available in developed markets.
The Fintel Quant platform provides a list of Emerging Markets securities sorted by the highest and lowest levels of institutional popularity in a list that can be found here. The stocks included in this article have seen the greatest increase and decrease of institutional ownership in the prior quarter.
Most popular stocks with institutions:
Chinese sportswear company Li Ning Co (HK:2331) has experienced the largest increase in institutional ownership with 6 net additions during the quarter, bringing the total count to 9. Despite the greater number of owners, the total share count held by institutions declined -1.57% to 12.73 million. The stock has traded down -32% over 2022 and recently fell a further 28% after reporting a Q3 operational update in mid-October. The stock has since recovered weakness from the Q3 update and is trading at levels seen prior to the result.
Indian multinational conglomerate Reliance Industries (IN:RELIANCE) equalled first place with 6 net additional institutions on the register during the quarter, bringing the total to 7. Institutional ownership has grown 12.39% to 2.81 million shares. The stock has outperformed global equity markets in 2022, rising 12.7% year to date. At the stocks most recent Q2 result in October, Reliance reported 2.3 trillion in sales and outperformed forests of 2.2 trillion.
Indonesian conglomerate Astra International (ID:ASII) saw 5 net additions bringing the total to 6. Institutional share ownership grew 8.34% to 45.28 million shares. The stock remains up 5.7% over the year after trading almost 30% higher by late April of 2022. The stock has entered bear territory from June with shares tracking lower.
Ecommerce giant JD.com (HK:9618) had 5 net increases in institutional ownership with 5.27% share ownership growth to 1.05 million shares. This may have included a partial rotation from the US listing decreases in ownership. The stock is trading -22% lower over 2022 but has outperformed broader Chinese equity markets. JD reported Q3 results in November which beat analyst forecasts, giving the stock recent positive momentum.
Grupo Mexico (MX:GMEXICOB) had 5 net institutions added to the register during the quarter. Total share ownership decreased -20.22% to 2.15 million. After a stronger start to 2022, the stock has tracked lower with global equity markets since March and is currently down -18.9% for 2022. The stock trades on a 9.1x PE ratio with a 6.76% annual dividend yield.
Other stocks in the top 10 included Wuxi Biologistics (HK:2269), Wal-Mart de Mexico (MX:WALMEX), LONGi Green Energy Technology (CN:601012), SK Telecom (KR:017670) and AIA Group (HK:1299)
Least popular stocks with institutions:
Samsung Electronics (US:SSNLF, KR:005930) has seen the largest decrease in ownership with a net reduction of 11 owners during the quarter. Despite the lower number of owners, total share count held by institutions rose 37.35% during the quarter from 935 thousand shares acquired. The stock has experienced weakness with broader equity markets, declining -22.9% over 2022. At the firms Q3 update in late October, the company posted results that were broadly expected by the street, resulting in a share price recovery.
Indian bank ICICI Bank (US:IBN, IN:ICICIBANK) experienced a loss of 7 institutions off the register over the quarter. The total institutional share ownership still grew 3.72% to 9.35 million shares.
Vale S.A. (US:VALE, BR:VALE3) had a reduction of 6 institutions off the register with 10 remaining. Share count ownership from the remaining holders grew 4.80% to 4.74 million shares. ICICI bank has outperformed broader equity markets rising 15.4% over 2022. The company continues to grow net interest income and profits as highlighted at the most recent Q2 result.
Tencent (HK:700) had a net reduction of 6 institutions off the register. Total share count ownership increased 1.16% to 2.89 million shares. The stock remains down -37% over 2022, with the gaming segment impacted by halted new title releases by the Chinese regulators. The company continues to cut costs by reducing staff numbers and cutting loss-making ventures and should emerge stronger when macro headwinds subside.
Battery chip manufacturer Silergy Corp (TW:6415) has recently lost 6 institutions off the register with 9 remaining. Silergy’s stock has traded sharply lower over 2022 losing -63.3% of its share price over the year. At the firm’s most recent Q3 result in early November, Silergy reported revenues and profits below consensus forecasts.
Other stocks in the bottom 10 included Infosys Ltd (US:INFY), Housing Development Finance (IN:500010), Sberbank of Russia (US:SBRCY), Taiwan Semiconductor (TW:2330) and NetEase (US:NTES).
This article originally appeared on Fintel
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