GCC equity valuations look attractive | GulfNews.com

GCC equity valuations look attractive | GulfNews.com:

"GCC equity markets are looking increasingly attractive after the broad-based sell off since the summer and these markets represent a buying opportunity, particularly with appealing stock valuations and stronger earnings momentum, according to Bank of America Merrill Lynch.

“There are broad-based buying opportunities, but stock selection is becoming the key. We retain our bias for markets with robust macro, attractive valuations, consistent earnings delivery and/or superior earnings growth. These factors make the UAE our most preferred Mena [Middle East and North Africa] market and Kuwait as our preferred GCC Frontier market,” said Hootan Yazhari, Head of Mena & Frontier Markets Equity Research.

The sharp correction across frontier markets since the summer has also yielded strong opportunities across many other markets, including Saudi Arabia. In this context, Yazhari said stock selection (rather than market selection) is becoming more crucial and advocate a focus on quality and mispriced opportunities."



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