"Buy Russian and Israeli stocks."
Morgan Stanley recommends buying Israeli stocks because of an improved earnings outlook.
Morgan Stanley head of global emerging markets strategy Jonathan Garner is optimistic about the Tel Aviv Stock Exchange (TASE), and raised his recommendation for it to "Overweight" from "Equal weight". He cited higher expectations for earnings growth and the improvement in political risk after Prime Minister Ehud Olmert announced last month that he will resign.
Garner also increased its "Overweight" recommendation for the Russian market, noting that stocks are traded at a significant discount.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2008
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