The share price for Templeton Emerging Markets Investment Trust PLC [NZX:TEM] has fallen by over 2% today.

Templeton Emerging Markets is a division of Franklin Templeton Investments, an American wealth-management company with a presence in 35 countries. Templeton makes strategic investments on behalf of clients, specialising in emerging markets with dynamic growth potential such as China, Mexico, Taiwan and India.

At the time of writing, Templeton has a market capitalisation of $3.35 billion, and the share price is $12.99.


Why did the Templeton Emerging Markets share price decrease today?

The New Zealand Stock Exchange fell to a four-month low yesterday as investors reacted negatively to the impact of rising US interest rates. This follows negative news in the United States, where the Nasdaq and Dow have both seen declines.

This trend has also been compounded by larger fears that global growth has stalled, leading to bearish sentiments in emerging markets. In particular, a political crisis is brewing in Saudi Arabia, which might lead to foreign policy retaliation via crude oil.

With prospects for growth looking doubtful, wealth-management firms like Templeton are feeling nervous jitters, prompting them to sell off riskier stocks and options.


What’s next for the Templeton Emerging Markets share price?

At the moment, Templeton investors are still trying to assess the long-term risks of stagnated growth in emerging markets.

However, we anticipate that the nerves will soon settle, and Templeton will regain its equilibrium.

There will be a rebalancing of priorities as Templeton fund managers seek out safer investments for their clients.



Taylor Kee,
Editor, Money Morning New Zealand

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