With Saudi Arabia and Egypt seeing values drop, UAE and Kuwait lead Arab Markets
Two banks and two real estate and one logistics companies received the top billing among UAE’s stocks in Mubasher Financial Services’ “Mena Favourite List” released on Sunday.
Abu Dhabi Commercial Bank, Aldar Properties, Aramex, Emaar Properties and First Gulf Bank figured in their first such list. The list comprises of 20 stocks in five markets of the region, which include Egypt, Jordan, Qatar, Saudi Arabia and the UAE.
Mubasher Trade Research recommended Arab Cotton Ginning, Commercial International Bank, EFG Hermes, Global Telecom, National Maize, Telecom Egypt and TMG Holding in Egypt; Arab Bank in Jordan; Commercial Bank of Qatar, Ooredoo and Qatar Electricity & Water in Qatar and Mobily, SABIC, SABB (Saudi British Bank) and Saudi Ceramics in Saudi Arabia.
With the exception of Saudi Arabia and Egypt, the traded value of Arab equities almost doubled in the first ten months of 2013 led by the UAE and Kuwait, according to a recent research note of Mubasher.
The turnover of equities jumped 93 per cent compared to a year ago to $114 billion, said Mubasher Trade in a press statement. It was led by UAE, which witnessed a surge of 201 per cent to $51 billion followed by Kuwait, which rose 71 per cent to $36 billion.
Amr Hussain Elalfy, CFA, Global Head of Research at MubasherTrade Research said, “We expect traded values to improve in 2014, particularly in Egypt [provided political stability is restored] and in Qatar and the UAE with the effective inclusion of both markets in MSCI Emerging Markets Index. Meanwhile, Saudi Arabia will continue to have the lion’s share of Arab markets’ equities traded values with further upside expected whenever the market is opened to foreign investors. Consensus estimates suggest double-digit earnings growth in 2014 [Egypt +20 per cent, Qatar+14 per cent, Saudi Arabia +19 per cent, and the UAE +10 per cent].”
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