MILAN, Oct 9 (Reuters) - BlackRock Inc sees Italian stocks as among Europe’s most attractive, along with French and German ones, a top executive at the world’s largest money manager was quoted as saying on Wednesday.
BlackRock Managing Director Mike Trudel told Italian daily Il Sole 24 Ore a “very attractive valuation” was behind the decision to raise the group’s stake in Italian telecoms group Telecom Italia to 5.13 percent.
“I can’t say more due to corporate rules but I can confirm that the whole of the Milan bourse generally interests us,” Trudel was quoted as saying.
He said French and German stocks also looked appealing. BlackRock funds have cut exposure to U.S. stocks because they are on average 20 percent more expensive than European ones.
BlackRock is also reducing exposure to government bonds in all of its portfolios because of insufficient risk-returns in the fixed-income sector, he said.
In Italy, energy and industrials were the most promising sectors, Trudel said, adding some banks could turn out to be good investments.
He said the Italian economy had a good chance of recovery and that political risks were present everywhere and should not be a reason to penalise Italy.