Brazilian Stocks Raised to `Major Overweight' at Morgan Stanley

By Alexis Xydias
Sept. 12 (Bloomberg) -- Brazilian stocks were raised to ``major overweight'' by Morgan Stanley's emerging-market strategists, who cited the shares' prices and the earnings outlook for South America's largest economy.
Investors should allocate 5.75 percentage points more of Brazilian stocks than are represented in the MSCI Emerging Markets Index, Morgan Stanley wrote in a report today.
Turkey was raised to ``equal-weight'' from ``underweight,'' meaning investors should hold as many of the shares as are represented in the emerging-market benchmark.
Malaysia and Thailand were cut to ``equal-weight'' from ``overweight,'' while Egypt was downgraded to ``underweight'' from ``equal-weight.''
Brazil's Bovespa Index is down 30 percent from its 2008 high on May 20.