Dubai: ING Investment Management said Monday said that 2010 will be a challenging year for markets as the region emerges from the impact of the global financial downturn.
Speaking at a media roundtable in Dubai on Monday, Fadi Al Said, head of equities at ING IM Middle East said although the regional stock valuations are looking attractive, he is very selective in stock picking across the regional markets.
"We are cautiously optimistic. Prices have come down, but our target prices are still lower," he said.
The Dutch asset manager, which manages a $50 million (Dh183.5 million) Middle East and North Africa, equity fund, said it had reduced its exposure to UAE stocks last year from 33 per cent of the funds in January last year to about 10 per cent of portfolio this year.
"Investors do not like uncertainties. Unfortunately we still have a lot of uncertainties around us in the UAE.
"Once we have some more clarity on the direction of Dubai World restructuring, confidence will return to the market," said Nish Popat, head of fixed income at ING IM Middle East.
Commenting on the regional credit markets, Popat said, "The challenges of 2010 will be to find the right opportunities as new issuances are expected to be lower and volatility anticipated to rise, which will provide opportunities for managers, who have done their due diligence and thorough credit analysis."
ING sees the sukuk market continuing to grow, especially in Saudi Arabia.
