Investors Cast Fresh Eye on Battered Emerging Stocks

Investors are starting to look afresh at emerging equities after years in which the sector has been a consensus "sell".  Barclays, Citi, HSBC, Morgan Stanley and Societe Generale are among banks now advising clients to buy back in - albeit selectively - after a prolonged sell-off that has slashed valuations.  "The timing of that decision will determine people's performance (for the year)," said Fredrik Nerbrand, global head of asset allocation at HSBC, who has a 40 percent portfolio exposure to EM-related assets through hard and local currency debt, commodities and equities.  "When I talk to investors, most people agree with us on a valuation basis, but are concerned about the headline risks that still persist in some emerging markets."

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Igor Purlantov