Russia leads emerging markets back to favour
Friday 11 April 1997
Among the most bullish about the country, Edinburgh Fund Managers is forecasting that the Russian market will outperform the best Asian market by 20 per cent this year. And there is widespread belief among other professional investors that it will emerge as the strongest performer in 1997.
The findings come from the latest quarterly survey conducted by Burson- Marsteller, the public relations consultancy, of 35 emerging market investors who manage 70 per cent of all portfolio investment in developing markets.
It comes ahead of the arrival in London next week of six of Russia's leading companies, including the GUM retailing group and Surgutneftegaz, the second-largest oil group, on a roadshow to encourage UK institutions to invest more in the country.
Explaining the new enthusiasm for Russia, Paul Philpotts, Burson-Marsteller's managing director, said: "Six months ago, institutions thought other parts of Eastern Europe were good investments. They now see Russia as a good buy. It's undervalued. Also the election means that politically it has become more stable."
Mr Philpotts added that the survey also showed that Latin America was "definitely back with a vengeance", having got over the Mexican financial crisis of 1994/95. Investors believe that economic recovery will continue in the area, fuelled by lower inflation, greater control of budget deficits and positive growth. Once seen as being tied to the US economy, the view was increasingly that the area could weather a correction in either US interest rates or on Wall Street.
Despite some signs that Poland and Hungary are looking over-priced compared with six months ago, Eastern Europe is still seen as offering some of the best opportunities among emerging markets. Smaller, so-called frontier markets, such as Slovakia, Ukraine and Croatia are also attracting some interest, the survey shows.
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo shot dead at war memorial
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: Provocative anti-sexism video showing young girls swearing reinstated by YouTube
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...