merrill lynch introduces ml emerging emea 1 list of high conviction ideas
Merrill Lynch (NYSE: MER) has introduced a new research product representing a collection of the highest conviction recommendations from the bank’s research analysts. The Merrill Lynch Emerging EMEA 1 list offers investors access to some of the firm’s most compelling research ideas in Emerging Europe, Middle East and Africa.
Stocks are selected for the list based on key investment themes identified by Merrill Lynch analysts. The list is designed to deliver superior performance, driven by the identification of high conviction stocks by analysts correlated with these themes. .
“Emerging EMEA is a region of exceptional diversity, whether viewed economically, politically or geographically,” said Gary Baker, director of EMEA Equity Research at Merrill Lynch. “Investment themes in the region range from tapping Russia’s vast resource wealth to the booming Gulf infrastructure story, and on to burgeoning demand for financial services and telecommunications.”
The ML Emerging EMEA 1 List will comprise between 10 and 30 names with no country accounting for more than one third of all stocks. Eligible stocks must trade in South Africa, Russia, Turkey, Israel, Poland, Czech Republic, Egypt, Hungary, Kazakhstan, Romania, Bulgaria, and Middle East and North Africa.
Turkey resurgent while energy remains vital for Russia
Turkey is included as a country theme based on Merrill Lynch’s belief that Turkey is finally emerging as one of the region’s largest economies after a period of rampant political and economic instability. Steady growth in foreign direct investment is boosting the economy’s long term prospects, and eventual accession to the EU is a real possibility.
Russia’s economy is starting to diversify after a decade of growth, but energy and the extractive industries remain key sectors. Merrill Lynch believes that resource nationalism is becoming more important – benefiting state controlled companies and expects further energy sector consolidation.
Metal and mining boom to continue
Rapid development of infrastructure in China and India, among other markets, is driving structural growth in the metals and mining sectors, in Merrill Lynch’s view. While China is already the dominant consumer of metals globally it still has potential to grow on a per capita basis
