Sharechat Logo

Stock prices looking attractive

By Paul McBeth

Monday 17th November 2008

Text too small?
The stock-market rout is making prices look “increasingly attractive,” prompting the fund manager to increase holdings in Hong Kong, India, Taiwan and Indonesia, according to Mark Mobius, Executive Chairman of Templeton Emerging Markets Investment Trust.

The volatility in global financial markets and the collapse of several major American corporate firms has prompted a worldwide exodus from equity markets, Mobius said in TEMIT’s latest quarterly report, released to the NZX.

“While no one can predict the absolute bottom of a market, we could be near the point of maximum pessimism, with market valuations looking increasingly attractive,” said Mobius. “History has shown us that the best time to buy is when everyone is despondently selling.”

TEMIT, a subsidiary company of US investment vehicle Franklin Resources, announced a fall in net asset value of 16.3% for the three months to September. TEMIT’s share price has fallen 45% this year on the NZX, and is currently trading at $6.75.

Recent purchases saw it gain footholds in technology companies Tata Consultancy, Mediatech, and VTech Holdings as it continued to search for undervalued stocks, according to the report.

It sold holding in Souza Cruz, Brazil’s leading cigarette company, as it looks to reduce its exposure in that country. Almost 25% of its total assets are in Brazilian financial and energy companies.

“Emerging markets have escaped relatively unscathed due to their low exposure to subprime mortgages,” said Mobius. “That is not to say that emerging markets have not and will not be hit by the developments taking place in the US”.

The trust invests in emerging markets, and warns investors that they carry a higher degree of risk and should be considered as long-term options."

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

28th October 2021 Morning Report
Wellington Drive Technologies Limited (NZX: WDT) Performs Strongly in Q3-2021
Ryman Healthcare Limited (NZX: RYM) Acquires Extensions to Two Existing Victorian Sites
Promisia Healthcare Limited (NZX: PHL) Banking Covenant Update
Pictor Limited Announces Start of US Clinical Trials for SARS-CoV-2 Serology Test
Arvida Group Limited (NZX: ARV) Opening of Rights Offer
Move Logistics Group Limited (NZX: MOV) Announces $40m Capital Raise
27th October 2021 Morning Report
The a2 Milk Company Limited (NZX: ATM) Investor Day 2021
Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer