International | Jul 07 2006
By Rudi Filapek-Vandyck
UBS’ investment strategy for Asia is centred around six themes: Basic Materials, Energy, Financials, Thailand, China and Korea. So far, the one that does not seem to be working is Korea.
The broker’s Asian equity strategists believe this may well be about to change as the upcoming results season is expected to bring a halt to the continuous sliding earnings expectations for Korean companies.
Since 31 Jan, consensus EPS forecasts for FY06 in Korea have fallen by 6.5%, the broker points out. UBS believes this explains why the Korean share market has underperformed so far this year.
