Brazilian Stocks Raised to 'Overweight' at JPMorgan (Update1)
2010-09-29 11:08:45.667 GMT
(Adds quote in fourth paragraph.)
By Laura Price and Michael Patterson
Sept. 29 (Bloomberg) -- Brazilian stocks were upgraded to
"overweight" by JPMorgan Chase & Co.'s Latin America
strategists, who cited attractive valuations, "moderate"
interest-rate increases and declining political risks.
Investors should hold more Brazilian shares in their Latin
America portfolios than are represented in benchmark indexes,
JPMorgan strategists led by Ben Laidler in New York wrote in a
research report dated yesterday. The strategists didn't include
their previous recommendation in the report and said investors
should keep "underweight" Brazil holdings within their global
emerging-market funds.
Brazil's Bovespa Index has advanced 0.9 percent this year,
trailing the 5 percent gain in the MSCI EM Latin America Index,
as central bank rate increases, a slowdown in Chinese demand,
upcoming Presidential elections and Petroleo Brasileiro SA's $70
billion share sale deterred investors. Those "overhangs" are
receding and may spur inflows into Brazil funds, the strategists
wrote. Dilma Rousseff, the chosen successor of President Luiz
Inacio Lula da Silva, is leading voter opinion polls ahead of
the Oct. 3 election.
"The market is now attractively valued, not well owned,
and performance has been held back by a number of overhangs that
are all going," the JPMorgan strategists wrote. "The rate
cycle has been benign, capitalization process over, and
Presidential election is this weekend."
The strategists downgraded Mexican stocks to "neutral,"
saying in the report that the country's "cyclical" economic
recovery has peaked.
For Related News and Information:
Emerging-market news: NI EM <GO>
For emerging-market stocks news: TNI EM STK <GO>
Developing economy market moves: EMMV <GO>
Emerging-market economic statistics STAT4 <GO>
World equity index rankings: WEIS <GO>
--Editors: Alex Nicholson, Peter Branton.
To contact the reporters on this story:
Michael Patterson in London at +44-20-7073-3102 or
mpatterson10@bloomberg.net;
Laura Price at +44-20-7330-7249 or
lprice3@bloomberg.net.
To contact the editor responsible for this story:
Gavin Serkin at +44-20-7673-2467 or
gserkin@bloomberg.net.
2010-09-29 11:08:45.667 GMT
(Adds quote in fourth paragraph.)
By Laura Price and Michael Patterson
Sept. 29 (Bloomberg) -- Brazilian stocks were upgraded to
"overweight" by JPMorgan Chase & Co.'s Latin America
strategists, who cited attractive valuations, "moderate"
interest-rate increases and declining political risks.
Investors should hold more Brazilian shares in their Latin
America portfolios than are represented in benchmark indexes,
JPMorgan strategists led by Ben Laidler in New York wrote in a
research report dated yesterday. The strategists didn't include
their previous recommendation in the report and said investors
should keep "underweight" Brazil holdings within their global
emerging-market funds.
Brazil's Bovespa Index has advanced 0.9 percent this year,
trailing the 5 percent gain in the MSCI EM Latin America Index,
as central bank rate increases, a slowdown in Chinese demand,
upcoming Presidential elections and Petroleo Brasileiro SA's $70
billion share sale deterred investors. Those "overhangs" are
receding and may spur inflows into Brazil funds, the strategists
wrote. Dilma Rousseff, the chosen successor of President Luiz
Inacio Lula da Silva, is leading voter opinion polls ahead of
the Oct. 3 election.
"The market is now attractively valued, not well owned,
and performance has been held back by a number of overhangs that
are all going," the JPMorgan strategists wrote. "The rate
cycle has been benign, capitalization process over, and
Presidential election is this weekend."
The strategists downgraded Mexican stocks to "neutral,"
saying in the report that the country's "cyclical" economic
recovery has peaked.
For Related News and Information:
Emerging-market news: NI EM <GO>
For emerging-market stocks news: TNI EM STK <GO>
Developing economy market moves: EMMV <GO>
Emerging-market economic statistics STAT4 <GO>
World equity index rankings: WEIS <GO>
--Editors: Alex Nicholson, Peter Branton.
To contact the reporters on this story:
Michael Patterson in London at +44-20-7073-3102 or
mpatterson10@bloomberg.net;
Laura Price at +44-20-7330-7249 or
lprice3@bloomberg.net.
To contact the editor responsible for this story:
Gavin Serkin at +44-20-7673-2467 or
gserkin@bloomberg.net.
Nenhum comentário:
Postar um comentário