Experts pay attention to shares of EM companies
Analysts are raising their profit forecasts for companies from the EM segment - since the beginning of June they have been raised by 12.1 percent, according to profinance. ru. For comparison, the increase in the same indicator for companies from the S&P 500 amounted to 12%. Higher profit forecasts are a sign that the value of securities of companies from countries is declining. At the moment, they are 15% cheaper than European stocks, and the MSCI EM index is 34% lower than the S&P 500. This is the lowest index since the crisis in 2008 - so far it has been on average 25%. Thus profit forecasts increase not only for the Chinese companies: in the center of attention of analysts - stocks of Latin American firms. According to Nader Naemi, Head of Market Analysis at AMP Capital Investors, profit growth in developing countries is not limited to the Chinese region - Latin American business has received significant support from the global growth in the manufacturing sector and rising prices for raw materials. In his opinion, this trend will continue.