DOHA: Mubasher Trade Research has created a “Mena Favourite List” which highlights its top investment ideas across the region. The list comprises 20 stocks in five markets. Three Qatari stocks — Commercial Bank of Qatar, Ooredoo and Qatar Electricity & Water — have found their place in the list.
MubasherTrade’s recent research note highlights that Arab equity markets’ performance in 2013 suggests a re-rating against the backdrop of strong economic growth and abundant liquidity within the region. Economic growth averaged +4.6 percent for the Middle East in 2012, led by Saudi Arabia (+5.1 percent) and Qatar (+6.2 percent). This compares favourably to a world average of +2.2 percent.
However, compared to a year ago total equities traded values dropped 18 percent in 10M 2013 to $433bn, mainly because of Saudi Arabia and Egypt (-32 percent and -34 percent to $309bn and $9.9bn, respectively), according to the report.
Excluding both markets, equities traded values almost doubled (+93 percent YoY) in 10M 2013 to $114bn, led by the UAE (+201 percent to $51bn) and Kuwait (+71 percent to $36bn). In 2014, economic forecasts suggest low- to mid-single digit economic growth rates in the Middle East, led by Qatar’s +5.2 percent, Saudi Arabia’s +4.5 percent, and the UAE’s +3.6 percent.
Amr Hussein 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 in mid-2014.”
The Peninsula
