Cheapest Israel Stocks Lure Aberdeen as Economy Trumps Syria

Israeli stocks are rebounding from their lowest valuations on record relative to developed equities as economic growth twice the pace of the U.S. outweighs concern over the conflict in Syria.

“There are certainly some attractive companies in Israel which trade at an undeserved discount to peers globally,” William Scholes, assistant investment manager at Aberdeen Asset Management Plc in London that oversees $318 billion including Israeli assets, said by e-mail Sept. 11. Scholes favors technology and services stocks as well as “companies with domestic consumption exposure,” such as Azrieli Group, a real estate investment company, and Ituran, which makes systems to locate cars.