The Dubai Financial Market looks like becoming the best performing stock exchange in the world this year and advanced two per cent today to its highest level since November 2008 when the Global Financial Crisis struck.
The DFM is now up 57 per cent in the year-to-date and has gained 69 per cent over the past 12 months. However, even after this amazing recovery the index is more than 50 per cent down on its pre-crisis level and 70 per cent off its all-time high in early 2006.
Lots of room to go up!
The Bloomberg five-year chart below puts the recent recovery in the DFM into perspective. There still looks to be plenty of room for stocks to go higher:
Later this month ArabianMoney editor and publisher Peter Cooper will be making the case for Dubai stocks at the annual Agora Financial convention in Vancouver, one of the largest meetings of investors in the world.
He will argue that Dubai share valuations still look cheap by comparison to US stocks and other comparable emerging markets. The Abu Dhabi bourse has made similar advances and also remains undervalued.
MSCI ranking
The UAE won inclusion in the MSCI Emerging Market Index this summer and that has refocused interest in both bourses, and led to speculation about the desirability of a merger to create one national bourse.
With oil revenues high and Dubai real estate in a strong recovery optimism about local investments is coming out of a very deep hole. This is not just a question of following Wall Street. How high will UAE stocks go?
If you can’t get to Vancouver to hear the presentation then it will be reproduced in full in our sister publication the ArabianMoney investment newsletter (subscribe here) which is an indispensable and independent guide to these markets.
'via Blog this'
No comments:
Post a Comment