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Friday Five: UK companies to profit from emerging markets

The UK and wider European economy will continue to be weak this year. Thankfully many of our major companies have long since learnt to look elsewhere for profits.

 

by Chris Marshall on Jan 25, 2013 at 08:00

Friday Five: UK companies to profit from emerging markets

All hail British PLC. While David Cameron does his utmost to disentangle the UK from a major trading bloc, Europe, major British companies are shifting their wares in much further flung parts of the planet.

Thankfully, the FTSE 100 isn’t dependent on the domestic economy to grow, but contains globe-trotting companies that long ago realised that fast growing markets are in places like Asia and South America.

But while chancellor George Osborne likes to boast of huge increases in trade to emerging markets, still too few companies have managed to really crack the tough markets of China and its neighbours.

The ones that have will be heavily sought-after by investors this year, with global banks including Morgan Stanley, Goldman Sachs and Citi all propounding the benefits of investing in stocks that are exposed to faster growing economies when the UK and Europe are so weak.

Here are five that are on the right track for long-term investors:

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4 comments so far. Why not have your say?

Tony Peterson

Jan 25, 2013 at 15:25

For once some good advice from the Lolly. Credit where it is due.

However, three of these have seen stonking recent rises. Whilst a similar, but astonishingly active share, has been in a very big dip. I would suggest any punters attracted to the abovementioned shares add Vodafone to their watchlist.

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peter hart

Jan 25, 2013 at 15:55

Cant disagree as I hold all those shares.

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Maverick

Jan 26, 2013 at 11:25

Look at the performance graphs for the above companies. Then look at the performance graph for Aberdeen Asian Smaller Companies investment trust.

Why try to use questionable logic on British companies operating in foreign markets when the professionals do so much better?

The larger the company, the more it is affected by international politics. No doubt a few years ago BP would have been in the above list.

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Jeremy Bosk

Jan 26, 2013 at 14:26

Yes, an excellent article and interesting links.

The second link, to quoted affiliates of developed country multinationals is particularly interesting. Unfortunately, I regard most of the countries listed as uninvestable because of corruption and politics. It is also difficult to find brokers willing to deal in shares quoted in may of these countries. Some of them probably have dual quotes in odd places such as Berlin or Frankfurt but it all seems a little too much trouble when there are so many more obvious opportunities closer to home.

Maverick has a couple of good points - although how long Asia can outperform the rest of the world is unknown.

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