Morgan Stanley places Chile among his favorite bets for 2019


Strong corporate earnings growth coupled with external factors, such as stabilizing US rates, will boost regional markets next year.

Chile's optimism about growth prospects is not just a local phenomenon, as the voices of international analysts calling for bets in our country grow.

This time it was Morgan Stanley, that in a report to his clients, he called investors to Chilean stocks overweight in their portfolios, along with those of Brazil and Peru.

The recommendation for Argentina is to maintain, while in the case of Mexico and Colombia the call is to reduce exposure.

The bank is generally confident of the prospects for Latin America, where the growth of corporate profits and "a little help" from the Federal Reserve US dollars would help strengthen the region's stock markets.

"We expect global and local factors to increase evaluation multiples over 2019," strategists Guilherme Paiva, Cesar Medina, Nikolaj Lippmann and Valentina Rodríguez wrote in a report released Monday. Morgan Stanley expects gains in the region to grow 17% in 2019 and 5% in 2020. The MSCI Latin America index projects a 12% return in dollars by the end of next year.

In this way, the US bank joins the favorable projections of its rival JPMorgan Chase, who last week highlighted Chile as one of its top bets for 2019. According to the entity, the poor performance recorded by the local exchange this year provides a good basis for the coming months, especially considering a solid growth of the economy, which would be reinforced with the implementation of the reforms.

In this way, he projected that the IPSA could reach 7,200 points by the end of 2019, which an increase of about 40% from its current position.

Thus, it increases the confidence of international experts for the Chilean stock market in 2019.


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