India among the least preferred emerging markets: BofA Merrill Lynch Survey
14 Sep, 2011
MUMBAI: India is among the five least preferred emerging markets, according to the BofA Merrill Lynch Survey of Fund Managers for September. In overall terms, fund managers are overweight on emerging market equities. However, if the banking crisis in Europe spirals out of control, emerging market equities will be vulnerable to further sell-offs, the survey report said.
"Sixty-eight percent of survey respondents now view the eurozone debt crisis as the largest of risks, up from 43% in June and 60% in August. Sentiment towards European banks is at its lowest since the beginning of this survey," the BoFA ML Survey said. The BoFA ML survey was done on a sample size of 286 money managers with $831 billion of assets under management.
While global investors have lowered their growth expectations for China, emerging market (EM) remains a consensus overweight. A net 30% of investors (fund managers who were surveyed) report being overweight on EM, up from 27% in August.
Over 40% respondents sounded extremely bullish on Brazil, which recently underwent a 50-bps rate cut that bolstered sentiment towards equity assets. Overseas investors have trimmed their overweight positions in Indonesia, while adding more to Russia and China in September. Taiwan, Malaysia, Colombia, Poland and India are the least favoured markets in September.
In terms of sectoral allocations, EM investors remain focused on consumption-related businesses and technology. Overseas fund managers are maintaining underweight positions in utility, materials, healthcare and engineering & industrial companies in September.
Though foreign investors are finding 'value pockets' in emerging markets, investors' risk aversion has soared to levels last seen in March 2009 in the wake of the global financial crisis. A net 45% of respondents are taking lower risk than normal relative to their benchmarks, up nearly 20% points from August. Cash holdings remain notably high at an average 4.9% of portfolios, with more than one-third of investors overweight cash.
"Sixty-eight percent of survey respondents now view the eurozone debt crisis as the largest of risks, up from 43% in June and 60% in August. Sentiment towards European banks is at its lowest since the beginning of this survey," the BoFA ML Survey said. The BoFA ML survey was done on a sample size of 286 money managers with $831 billion of assets under management.
While global investors have lowered their growth expectations for China, emerging market (EM) remains a consensus overweight. A net 30% of investors (fund managers who were surveyed) report being overweight on EM, up from 27% in August.
Over 40% respondents sounded extremely bullish on Brazil, which recently underwent a 50-bps rate cut that bolstered sentiment towards equity assets. Overseas investors have trimmed their overweight positions in Indonesia, while adding more to Russia and China in September. Taiwan, Malaysia, Colombia, Poland and India are the least favoured markets in September.
In terms of sectoral allocations, EM investors remain focused on consumption-related businesses and technology. Overseas fund managers are maintaining underweight positions in utility, materials, healthcare and engineering & industrial companies in September.
Though foreign investors are finding 'value pockets' in emerging markets, investors' risk aversion has soared to levels last seen in March 2009 in the wake of the global financial crisis. A net 45% of respondents are taking lower risk than normal relative to their benchmarks, up nearly 20% points from August. Cash holdings remain notably high at an average 4.9% of portfolios, with more than one-third of investors overweight cash.
Source: The Times of India,
http://economictimes.indiatimes.com/markets/analysis/india-among-the-least-preferred-emerging-markets-bofa-merrill-lynch-survey/articleshow/9973500.cms
Không có nhận xét nào:
Đăng nhận xét