Emerging Market’s Profits: Where’s The Beef?
February 17, 2012 9:58 am
This is interesting. After such an amazing start to the year, it would seem as though there was something behind the surge of the equities in the Emerging Markets. But as that well known Wendy’s commercial used to say…
WHERE’S THE BEEF?
About 44 percent of companies in emerging markets tracked by Morgan Stanley have missed analysts’ fourth-quarter earnings estimates, compared with 29 percent that have beaten them.
India, Singapore and Peru are among the top three emerging and Asian countries that have beaten profit expectations “in terms of magnitude and breadth,” while South Korea, Brazil and Mexico have the “highest earnings misses,” Morgan Stanley analysts Jonathan Garner and Pankaj Mataney wrote in a report dated yesterday.
Morgan Stanley reduced its weighting on emerging and Asian stocks from the maximum “overweight’ and boosted cash holdings to 2 percent from zero, according to a Feb. 10 report.
The MSCI Emerging-Markets Index fell 0.5 percent to 1,053.21 at 9:12 a.m. in Shanghai, trimming this year’s gain to 15 percent.
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