For exposure to Argentina, Itau says look to banks and energy
By: Caroline Stauffer
The banking and energy sectors present the most opportunities for foreign investors looking for exposure to Argentina as its economy opens after years of isolation, Itau BBA's senior vice president of research for Latin America said on Thursday.
A new capital markets reform likely to be presented to Congress soon will help foreign investors access Argentine stocks and an expected upgrade from frontier to emerging market status next year will also help, Ricardo Cavanagh said in an interview.
"You will have a lot of volume growth in real terms over the next two years. That will need stronger capital," Cavanagh, who oversees research of southern Latin American and Andean countries from Buenos Aires, said of Argentine banks.
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