Salient to Investors: John-Paul Smith at Deutsche Bank said stocks in the major developing markets will again lag global equities in 2013 – China has focused on increasing the pool of buyers for Chinese assets, rather than boosting the role of free markets and privately run companies in the broader economy. Smith prefers cash to BRIC
READ MORE... →Salient to Investors: Q3 earnings of 58 percent of 62 companies on the Bovespa index missed analysts’ estimates versus 62 percent that missed in Q2 and 60 percent that missed in Q1. 67 percent reported sales higher than expected – Rodolfo Amstalden at Empiricus Research said the divergence is in part due to increasing costs in a tight labor market. Analysts
READ MORE... →Salient to Investors: Brazilian equities saw the biggest outflows in the past two months since Lehman’s collapse in 2008. EPFR Global said emerging-market equity funds attracted $10 billion during the same period, while Mexican stock funds had inflows of $179 million. Brazil’s domestic stock funds had inflows of $2.5 billion so far in 2012 versus
READ MORE... →Salient to Investors: Anna Stupnytska at Goldman Sachs Asset Mgmt said: The growth market and the emerging market should be the main focus. Emerging markets are undervalued because investors are focused too much on the developed world. Investors are undervaluing the BRIC story which is still valid long-term. grow center The rise of the
READ MORE... →Salient to Investors: Luca Molinari at Warburg Pincus is targeting infrastructure service providers in Brazil which will grow significantly in the coming years. BTG Pactual Participations and Carlyle Group also seek to profit from investments needed to upgrade Brazil’s infrastructure for the World Cup and 2016 Summer Olympic Games. Eduardo Centola at Banco
READ MORE... →Salient to Investors: Brazilian small-caps are at 1.59 times book versus 3-yr low of 1.33 in June and the highest versus the Bovespa since February 2009. Consumer stocks account for 30 percent of the small-cap index, almost three times as much as their share in the Bovespa, where commodities producers account for 43 percent. Herculano
READ MORE... →Salient to Investors: Emerging-market equity funds posted $8.7 billion of outflows in Q2, $262 million of outflows n the week ended June 27 – 2012 inflows dropped to $14 billion. Russia’s RTS Index lost 22 percent this quarter, Brazil’s Bovespa Index lost 18 percent, Shanghai Composite Index lost 2.3 percent. Chinese industrial companies’ profits
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