Pessimism surrounding emerging markets is becoming entrenched. Half-year results next week from emerging markets-focused asset manager Ashmore (ASHM) should provide another acid test for the sector.
IC TIP:
Hold
at
215p
The MSCI Emerging Markets index has lost 17 per cent in the past year compared with a virtually flat MSCI World index, in sterling terms. But given the battering taken by emerging markets-focused companies, could we be reaching the bottom?
It would be a brave call. Analysts at Numis have moved Ashmore and the similarly beleaguered Aberdeen (ADN) from hold to buy, adding: "We know this probably won't be the absolute bottom; however, we also know that we won't be able to time that perfectly."