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The Expert View: Ashmore, Workspace, Restaurant Group
by Chris Marshall on Sep 23, 2013 at 05:01
Vedanta: back on ‘hold’ amid political uncertainty
Having raised Vedanta (VED.L) to a ‘buy’ just a couple of weeks ago, Liberum have stuck shares in the Indian-focused, London-listed resources giant back on ‘hold’.
Unfavourable commodity and currency price movements, alongside renewed political uncertainty are behind the move, analyst Ben Davis explained.
‘The government has been implementing fiscally imprudent populist policies as proper economic and political reform is so frustratingly slow in India. With the implementation of such policies, it is only rational that investors expect further tailwind risks in the run up to  elections,’ noted Davis.
It’s not all bad though. Davis and team were still ‘optimistic’ of an eventual lifting of an Indian iron ore export ban ‘which could provide a catalyst for the share price’. They also view the appointment of former Rio Tinto chief Tom Albanese as an adviser ‘positively’.
Vedanta closed down 4.3% on Friday, to £11.35.
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On the road
on Dec 06, 2013 at 14:28