Morgan Stanley maintains its 'overweight' rating on UK equities and citescompanies including insurer Aviva and media group ITV as amongthe best ways to play an economic recovery in the country.
The bank cites the recent upgrade by its economists of the UK's growthoutlook; a further expected fall in sterling against the dollar; the UK's strongposition against other countries when assessed on a quantitative basis; and areasonable valuation relative to the market's own history and global peers.
Domestically focused stocks with attractive valuations are the best way totap into the theme, they write, also flagging British Land, Drax, Enterprise Inns Land Securities, Marks & Spencer, Sainsbury, TalkTalk and William Hill.
Reuters messaging rm://simon.jessop.thomsonreuters.com@reuters.net