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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: wl9839 who wrote (15248)	5/12/1999 3:30:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Morgan Stanley's Pelosky on Emerging Market Rally: Comment New York, May 12 (Bloomberg) - Robert Pelosky, chief emerging market strategist at Morgan Stanley Dean Witter, comments on the current rally in emerging market stocks and bonds and his stock picks. His comments were in a speech to the Council of the Americas in New York and during an interview afterward. ''I believe we've entered the new investment cycle for emerging markets that will take us to all-time highs over the next two to three years. Between January 1999 and 2002, emerging markets could be up 100 percent in U.S. dollars. We are in the value stage currently. Growth will take place over the next one to three years - both GDP and earnings will rise. We expect emerging markets in general should average 15 to 20 percent earnings per share growth over the next couple years. Latin America could recover faster than people think. We think Latin American economies will grow 0.5 percent this year, and 3 percent next year. Lastly, the momentum stage will occur when non- dedicated investors come in to the asset class.'' ''Telmex is our poster stock. It is up 80 percent, and it's still trading at a 25 percent discount to a global telecommunications average. Telmex has already demonstrated its ability to compete very strongly. However, the stock is probably due for a period of consolidation, maybe a pause. We still have a ''buy'' recommendation on it, but we started recommending it at 56. Now it's at 88. ''We like stocks like Unibanco and Brahma in Brazil, Cemex in Mexico, Pohang Iron & Steel Co. in Korea, TSMC in Taiwan, several stocks in India, particularly some of the big multinational corporations. In Eastern Europe, we like Hungary.'' ------------------------------------------------------------------------ © Copyright 1999, Bloomberg L.P. All Rights Reserved.