SINGAPORE (Sept 14): After recently cutting its MSCI EM index target for a third time this year, Morgan Stanley has made more ratings changes for stocks four countries: Malaysia upgraded to equalweight, Turkey downgraded to underweight, South Africa cut to equalweight and Poland raised to overweight.
* “India, Chile, Hong Kong and Malaysia exhibit a good combination of low beta and high beta estimate stability vs peers,” analysts led by Steven Ye said in a note published Sept 13
* South Africa: Recent 2Q GDP data “was disappointing,” taking economy into a technical recession. Combination of weak macro data, challenged outlook for the rand, “unsupportive” earnings-revision trends led to downgrade to equalweight from overweight
* Poland: Index isn’t cheap compared with historical data but ROE trends looking strong