Middle East and North Africa markets heading for a correction, say fund managers

Fund managers investing in the Middle East and North Africa (MENA) are united in expecting a correction, according to the latest update on the sector from Standard & Poor’s Fund Services.

An example is Shakeel Sarwar, head of asset management at SICO, managers of the S&P AA rated SICO Gulf Equity Fund, who began the year with more than 50% in cash.

Sarwar told S&P Fund Services his active management of cash during the second quarter reflected his lack of conviction in the sustainability of the sharp rally in GCC markets which began at the end of February.