Colombia Upgraded to Overweight
This should be good news for thos ewho are long........
DM Grenfell ups Peru, Colombia in LatAm portfolio
NEW YORK, April 14 (Reuters) - Deutsche Morgan Grenfell strategist Jane Heap raised her weightings for Peru and Colombia in a model portfolio of Latin American stocks.
In a report on allocations for the second quarter, she raised Colombia to overweight from underweight. Peru was boosted to neutral from underweight.
Each country makes up three percent of Heap's asset allocation.
"The improving political environment, compelling valuations, the market's oversold condition and the low volume required to substantially move the market are all reasons behind our bullish outlook," she said of Colombia.
Peru's "equity valuations are attractive and trading below their one-year standard deviation bands," Heap wrote. "Moreover, with the worst of (weather phenomenon) El Nino behind us, the growth potential should improve."
Among other Latin American markets, Brazil and Mexico were overweight, Chile underweight and Venezuela and Argentina neutral.
"In Mexico, robust earnings expansion, continued economic recovery and attractive valuations have led to our overweight position," she said.
Brazil's weighting was based on rising foreign reserves, falling interest rates, attractive valuations and an improving trade account and heightened expectations for economic growth.
10:34 04-14-98 |
