Warning: simplexml_load_file(): rss/gpw_companies_indices.xml:10: parser error : Input is not proper UTF-8, indicate encoding ! Bytes: 0xB3 0x6F 0xB6 0x63 in /equities.pl/klasy/mainpage/EquitiesCompaniesIndices.php on line 15

Warning: simplexml_load_file(): <index><name>ABM Solid SA w upad�o�ci uk�ad</name><short>ABM</short><value_open> in /equities.pl/klasy/mainpage/EquitiesCompaniesIndices.php on line 15

Warning: simplexml_load_file(): ^ in /equities.pl/klasy/mainpage/EquitiesCompaniesIndices.php on line 15
BlackRock optimistic on Eastern Europe in 2014, Advisory and Opinions - EquitiesPoland.pl
Coverage of high-potential mid-market firms in Poland

Advisory article

BlackRock optimistic on Eastern Europe in 2014

A turning point in the performance of Eastern European equities may finally be on the cards this year, according to Sam Vecht, co-manager of the BlackRock Emerging Europe trust.

With the exception of the rally seen in late 2010, emerging European equity markets have struggled since the financial crisis.

The region saw another disappointing year in 2013, but Vecht argued equities are now attractive from a valuation perspective.

- It is not about investment stories and themes, it is all about the valuations, and there is real value to be found in emerging Europe at the moment, he said.

From a basket of Eastern European countries listed in the MSCI indices, the only country that made a positive return last year was Greece. Russia, Turkey and Hungary, by contrast, were down 10.6%, 39.5% and 15.7%, respectively.

- This year might be the year of the Eastern European renaissance, Vecht claimed. - It has been seven years in the doldrums and it is time for a change in sentiment.

The manager said the region is delivering a higher dividend yield (of around 4%) than emerging markets for the first time since the launch of the trust in 1994.

His biggest country call is Turkey, which now accounts for 20% of Vecht`s portfolio: a stark contrast to the underweight position he has held for the past three years.

Vecht is especially bullish on Turkish banks, with Garanti Bank and Halkbank among the trust`s fifteen largest holdings.

However, Russia still remains the trust`s largest country weight at 52.6% and oil giants Gazprom and Surgutneftegaz together make up over 14% of the trust.

- We are not a Russia fund, and we would have a lot less in Russia if the oil price falls significantly, Vecht said. - There are a number of stocks in Turkey, Poland and Hungary on our radar in case we need to switch.

The trust lost 0.2% over the year to 10 January, according to Morningstar, but remains up 114.5% over the past five years.

Source: InvestmentWeek.co.uk

2014-01-30



Comments : 0

Add comment

The published comments are private opinions of the users. Biznespolska Media Sp. z o.o. is not responsible for their content. Intelligent and insightful comments most appreciated.

Photo of the week

Photo of the week

Following an impressive run, PKN Orlen fuel reappoints CEO Wojciech Jasiński to spearhead the company to newer, more challenging waters. Gives him a new three year term!

2018-04-19

WSE Indices


NameValueChangeTime
WIG20 2324,73 +0,40 % 17:15
WIG 60629,81 +0,19 % 17:15
sWIG80 14126,48 -0,65 % 17:15
NCIndex 259,24 -1,17 % 17:15

WSE Companies


Top 5 Gainers


Warning: Invalid argument supplied for foreach() in /equities.pl/klasy/mainpage/EquitiesCompaniesIndices.php on line 211

Companies temporarily unavailable

Top 5 Losers


Warning: Invalid argument supplied for foreach() in /equities.pl/klasy/mainpage/EquitiesCompaniesIndices.php on line 223

Companies temporarily unavailable