Sept. 6 (Bloomberg) -- Turkish stocks were raised to “overweight” from “equalweight” in Morgan Stanley’s emerging market portfolio for Eastern Europe, the Middle East and Africa.
“After continued underperformance year-to-date, we believe that Turkey’s headwinds are mostly in the price,” Morgan Stanley’s regional equity strategist Marianna Kozintseva said in a report to investors emailed today.
Morgan Stanley is “overweight” Turkish banks as “the world of low growth suits them,” there are decreasing concerns about the funding of the current account deficit and inflation, and room for monetary easing, which would boost banks’ profits.
Czech equities were cut to “underweight” from “equalweight” to fund the Turkey upgrade, Kozintseva said, foreseeing “a relatively unappealing growth environment.”
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