MARKET TALK: Macquarie Lifts BHP, Rio Weights In Aussie Portfolio

22nd Jun 2010 02:07

0107 GMT [Dow Jones] Macquarie Equities has lifted the weighting of BHP (BHP.AU) and Rio (RIO.AU) in its model Australian equities portfolio because BHP and Rio, in particular, are trading near their lowest valuations seen over the past two decades, at a time when their earnings growth outlooks remain very strong. Broker says U.S. manufacturing recovery remains on track, Chinese authorities appear likely to soon moderate their restrictive policies and Europe is trying to deal with its problems. "Rio remains the standout cheap stock in the Australian market as the relative PER valuation stands at a 34% discount to a market PER which is also undervalued," says Macquarie. BHP last down 0.6% at A$39.69, RIO down 0.4% at A$72.03. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 21, 2010 21:07 ET (01:07 GMT)