Regional fund managers expect Middle Eastern markets will continue to decline over the next few months, but are optimistic they will rebound over the longer term, according to a survey taken of regional fund managers by Standard and Poor’s (S&P), the ratings agency.
During the past year, Middle Eastern stocks in nearly every sector declined, leaving funds heavily invested in the region with annual returns ranging from negative 20 per cent to negative 50 per cent, S&P said, although GCC funds fared slightly better than the rest.
“The region’s much vaunted low correlation with the rest of the world’s markets failed to materialise and all the major Middle Eastern markets fell significantly in recent months,” said S&P Fund Services lead analyst Roberto Demartini. The Dubai and Egyptian exchanges, which both fell by more than 50 per cent last year, were especially affected by global trends, he said.
No comments:
Post a Comment