merrill lynch launches ml emerging emea 1 listof high conviction ideas
Merrill Lynch (NYSE: MER) has launched a new 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.
Merrill Lynch’s research committee believes the list it has compiled will deliver superior performance, driven by key investment themes identified by Merrill Lynch analysts incorporating their highest conviction stock selections.
“Emerging EMEA is a region of exceptional diversity, whether viewed economically, politically or geographically,” says Gary Baker, director of 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
Among the country themes, Turkey is finally punching closer to its weight 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.
