The Hindu Business Line : `Appetite for risk in EMs is going up'

According to Mr Mark Tan Keng Yew of UOB Asset Management the company is deploying money in Korea and China; its their stand on India, currently, is neutral.

He adds that the company is bearish on technology stocks and would stick to large-cap stocks in India. He sees more India funds being launched and says that the appetite for risk in emerging markets is going up again.

. Excerpts from CNBC - TV18's exclusive interview with Mr Mark Tan Keng Yew:

How have you read the noise that has come in terms of interest rates, and how do you expect that to impact liquidity to a market like ours?

Asian emerging markets are looking better, now that the Fed has been soft on interest rates. So with interest rates in the US pausing, oil prices going down even lower, this augurs well for liquidity in Asia.

Do you see the appetite for risk in emerging markets going up once again?

Yes, certainly. I think investors have been burnt after May and June, but the pockets for growth in the world are still very much in emerging markets, as in India, and if one wants to stay invested in equities, this has got to be the region. I do not think people are going to play blindly for growth, there will be more discerning as to where they are going to put their money, which companies have greater earnings visibility and growth visibility as well. Everything is going well for the markets going forward, with more discerning investors and with interest rates coming off to the peak.

What is your view on the mid-cap universe in India because that has been the segment which has actually done the best over the last four-five trading sessions? Do you find lots of interesting ideas there, or you would rather stick to the large-caps?

At the moment I would still rather stick to large-caps because that holds a track record and that's where the money will go to when new funds are being set up. There is more earnings possibility in this area.

After the Q1 earnings, are there any stocks to which you have actually increased your exposure?

Yes, we have increased our exposure to the industrial segment. For example, Bharat Heavy and also utilities such as National Thermal Power Corp or Calcutta Electric Supply Corporation.

What stocks have you been switching out of your portfolio in the last couple of months?

I have been taking some money off the table for technology stocks.

Have you been participating at all in the primary market offerings?

No, not at the moment, just concentrating on the big-caps right now in India and adjusting stocks in our portfolio.

Are you sitting on a lot of cash in your portfolio? Have you taken some money off after the recent rally back in India and some of the other emerging markets?

No, we have not. We have been deploying money into markets like Hong Kong and China especially. We have taken some money off the table in Korea and we are deploying more into the North-Asian markets as well as the South-Asian markets such as like Thailand, and the Philippines and Indonesia.

What is your weightage on India amongst other emerging markets now?

We are neutral on India; steady at the moment but probably looking towards neutral.

More Stories on : Interview | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
JRG opens PAN service counter

Fund houses shift focus to debt schemes

UTI Mid Cap Fund declares 30 pc dividend

Principal MF aiming better days for global fund

ING Vysya to re-position fund

Bulls prevail

Khaitan India: Quiet accumulation

`Markets may see dip in FII flows in 2006-07'

Sensex shoots up 135 points

`Appetite for risk in EMs is going up'

Markets momentum continue with sharp gains