Abu Dhabi stocks most undervalued

Abu Dhabi stocks are the most undervalued among Gulf markets, according to a new survey from Shuaa Capital, the UAE’s largest investment bank. The GCC Investors Sentiment Report, which surveyed 100 institutional investors, also said markets in Saudi Arabia, Qatar and Abu Dhabi were likely to outperform other Gulf indexes in the next six months.

“Overall, investors reported finding the GCC markets more attractive than those of the BRIC – Brazil, Russia, India and China – countries and even the global emerging markets universe,” it said.

It follows a Morgan Stanley report that said Arab stock markets, especially Saudi Arabia, Qatar and Egypt, had “appealing” valuations and were “economically resilient” to the global financial crisis. Morgan Stanley said its preferred stocks in the region were Qatar Electric and Water, Qatar Telecom and Telecom Egypt and it recommended investors increase exposure to the “MSCI” Arabian markets again.