Societe Generale have added ABB and Nokia to their
"premium list" of top stock picks, as they look to add so-called cyclical stocks
which tend to rise with economic optimism.
"With investors now demonstrating a stronger affinity towards risk, we are
increasing our exposure to cyclical stocks," analysts at Societe Generale write
in a note.
"We believe that ABB and Nokia are in an ideal position to take advantage of
this year's stronger economic growth, particularly in the U.S., as projected by
our economists, on the back of their cyclical businesses such as electricity
networks, automated technology, wireless telephones and telecommunications
Nokia's share price dropped by over 20 percent last year, but it is already
up 18 percent in 2013, as a strong fourth-quarter showing and good sales of
their new Lumia handset helped to assuage concerns that the mobile phone
manufacturer was losing out against major market competitors Apple and
Societe Generale also adds Banco Espirito Santo to the SG Premium
List, citing the Portuguese bank's relatively sound balance sheet, good
liquidity and potential for outpeformance.
The bank has added over 27 percent so far in 2013, building on a 10 percent
gain last year, but still trades at a price-to-book ratio of 0.7, according to
Thomson Reuters Starmine data. This means the bank still trades below the
accounting value of its assets.
Roche is taken off the premium list, with Societe Generale saying
that the stock's strong performance has reduced the potential for future
The Swiss drug stock has added nearly 20 percent since the beginning of
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