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Middle East managers bullish on equities
27 February 2014
Some local managers look to shift allocations to less frothy markets, according to new Reuters survey
Middle Eastern fund managers continue to favour the
majority of regional stock markets but some are looking to
shift money to less richly valued markets, according to
Reuters’ monthly survey of 17 regional investment
The results show that 53%, a four-month high, expected to
increase equity allocations to the Middle East in the next
three months, while none expected a decrease,
predominantly due to the strong performance of stock
Respondents were also optimistic about the regional fixed
income market, albeit with a hint of caution over the prospect
of a decrease in US monetary stimulus. Some 20%
expected to raise allocations to regional fixed income in the
next three months while 13% expected a reduction.
There was a discrepancy in opinions on UAE equity markets,
where 33% of managers expected a hike in allocations but 20%
expected a cut in exposure. Money is being shifted from UAE to
Qatar and 47% of managers said they would raise allocations
while only 7% stated they would expect a decrease.
For Saudi Arabia, 60% expected to increase allocations, while
there was a similar bullish tone to investing in Egypt, where
the stock market has risen by more than 60% since
July’s ousting of President Morsi. Some fund
mangers were optimistic about upcoming elections which
they hoped would stabilise the political situation and lead to
an economic recovery, with 53% of fund managers expecting to
raise allocations to Egypt and only 7% expecting a decrease.
Many fund managers remain bearish on Turkey due to political
turmoil and currency volatility, with only 7% expecting to
raise allocations and 33% expecting to cut exposure.
The survey was conducted by Trading Middle East and the
following institutions took part: Abu Dhabi Fund for
Development; Ahli Bank Oman; Al Rayan Investment; Al Mal
Capital; Arqaam Capital; Emirates NBD; Global Investment House;
Mashreq Bank; Naeem Financial Investments; National Bank of Abu
Dhabi; Rasmala Investment Bank; Mohammed Alsubeaei & Sons
Investment Co (MASIC); Schroders Middle East; Securities and
Investment Co of Bahrain; Amwal Qatar.