Emerging markets quiet; new issues may follow U.K. long weekend; Venezuela, PDVSA bid higher

By Rebecca Melvin

New York, Aug. 24 – Emerging markets were quiet Thursday as an upcoming U.K. bank holiday and a lack of trading catalysts left investors eyeing the annual gathering of central bankers and economists starting in Jackson Hole, Wyo.

The week has been slow and uneventful in the Central & Eastern Europe, Middle East and Africa region, but there was some speculation that new issuance could be on tap for next week following the long holiday weekend.

Speculation about a possible Pakistan sukuk or conventional bond joined a growing list of potential issuers in the Middle East region anticipated to come to market soon. The possible issuers include Oman, Bahrain, Turkey, Egypt, Qatari banks and Jordan, in addition to Pakistan, market sources said.

Pakistan is being eyed for a $500 million to $1 billion Islamic or conventional bonds, denominated in dollars.

“There should be a good mix of banks and sovereigns, but we don’t know until it hits,” a London-based trader said about possible upcoming issuance.

Venezuela and Petroleos de Venezuela SA bonds were catching a bid on Thursday amid relief that U.S. trading restrictions on Venezuela debt may not be as onerous as first thought and as investors were reinvesting coupon payments made on the Venezuela 12¾% notes due 2022 and the PDVSA 12¾% notes due 2022, a Connecticut-based trader said.

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