The rally in central and eastern Europe’s equity markets will continue this year if the oil price remains above $70 a barrel, say analysts at UniCredit. Relatively cheap valuations too should continue to attract investors.
The MSCI EME Index is up 51% in the year to date and a stunning 98% since March 2, when it reached its low for the year. Turkey and Hungary, together with the Czech Republic, have led the turnaround, with financials the best-performing sector, although these markets might be running out of steam.
Instead Mark Robinson, head of equity research at UniCredit, reckons that continuing good performance in the region will be driven more by Russia and, to a lesser extent, Kazakhstan especially if the oil price climbs above $70 a barrel.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
