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Investor warns Gulf stocks will fall further
One of Dubai's biggest investors believes Gulf Arab equity markets still have further to fall but that the region's two biggest bourses - Saudi Arabia and Dubai - will bounce back by the end of the year.
- Reuters
- Published: 00:01 September 15, 2008
Dubai: One of Dubai's biggest investors believes Gulf Arab equity markets still have further to fall but that the region's two biggest bourses - Saudi Arabia and Dubai - will bounce back by the end of the year.
"These markets are trying to search for a bottom," said Mustafa Fareed, chief executive officer of the Dubai Capital Group, which controls $2.6 billion in investments in the Middle East and North Africa.
"I don't like it if the market recovers quickly," he told Reuters by telephone. "It should consolidate."
Leading indexes in Dubai and Saudi Arabia should rise 20-30 per cent from their nadir -which has yet to be reached - by year end, he said.
The DFM general index has fallen 28 per cent so far this year, and the Saudi blue chip measure has fallen 29 per cent this year.
Emerging markets stocks, as measured by MSCI have fallen over 36 per cent this year.
Fareed said he expected Dubai Capital's performance to be robust despite sharp falls in regional equity indices.
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