STOCKS NEWS EUROPE-UBS sees 'reasonable' index returns in 2013
Europe faces another difficult year in 2013, with euro zone growth seen at zero, although analysts at UBS still see "reasonable returns" for regional indexes, with the STOXX Europe 600 expected to end the year up 3 percent and the FTSE 100 up 6 percent, they write in a note.
The bank's top sector picks heading into the new year are mining, pharma and engineering, while its least favoured ones are the steelmakers and utilities.
UBS suggest investors benefit from cyclical exposure, though companies such as ABB and Spectris ; look for ways to tap into an ongoing U.S. economic recovery, assuming its fiscal issues are resolved, though companies like Ashtead and Carnival ; and position for exposure to the emerging markets, through firms like Holcim and Rio Tinto .
It also stresses "the importance of the bottom-up investment case"; the need to identify the structural factors affecting various sub-sectors; and the chance to position for increased shareholder returns.
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