Gulf stocks retain safe haven status amid emerging market woes
Abu Dhabi index gains 12% year-to-date compared to near 10% loss for MSCI emerging market index
Dubai: Equity traders in the Gulf have been indifferent to worries creeping across emerging markets and instead see this region as a safe haven.
Emerging markets have been having an exceptionally torrid time, with volatility pulling down the Turkish lira, Indian rupee and Mexican peso.
The Abu Dhabi Securities Exchange’s general index has gained 12 per cent in the year-to-date, compared to the near 10 per cent loss in the MSCI emerging market index.
On Monday, the outperformance continued as the Abu Dhabi index closed almost flat at 4,937.69. The Dubai Financial Market ended 0.43 per cent lower at 2,829.58.
The MSCI emerging market index was down 0.64 per cent at 1,049.19.
Saudi Arabia’s Tadawul index, which has gained 9.4 per cent since January 1, was 0.14 per cent higher at 7,926.55.
The S&P Pan Arab Index has been the best performing emerging market with 9.3 per cent gains so far in the year.
“Gulf equities have been a safe haven in the current turmoil affecting EM currencies, benefiting from the dollar peg as well as strong oil prices,” Vrajesh Bhandari, fund manager at Al Mal Capital, told Gulf News.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.18 per cent lower at 4,427.6.
