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From Sagar Chakraverty, Opalesque Asia:
Interward Asset Management, a specialist investment firm with focus on the small and mid cap areas of the Canadian market, released its outlook for 2010 according to a communication received by Opalesque yesterday.
Chinese building spree to drive commodities demand
Interward forecasts that China will shift its development focus from coasts to interior regions where over 700 million reside. This would generate a huge demand for resources as China starts building up its interiors. The firm foresees an annual Chinese GDP growth rate of 8%-9% in the near future.
Apart from China, commodities will see a surge in demand from other BRIC countries too due to massive construction plans to build-up their towns and cities. Investors are keen to invest in emerging markets thanks to Goldman Sachs' forecast that the BRIC GDP would hit the $20tn mark within just 10 years, thereby outpacing the US GDP.
Commodities pushing up energy valuations
Stronger commodities prices have pushed up valuations in the energy sector. Energy companies in Canada with geological expertise are looking buoyant in 2010.
Interward believes that Bankers Petroleum, a Canada-based oil and gas exploration and production company, will generate positive returns for investors in the near future. This oil company has a market cap of C$1.5bn ($1.42bn) which is modest according to the firm. Bankers is raising its production capacity, wh...................... To view our full article Click here
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