Tuesday 11 December 2018

#Dubai Stocks Nearing Valuation Low of Early 2016 Oil-Price Slump - Bloomberg

Dubai Stocks Nearing Valuation Low of Early 2016 Oil-Price Slump - Bloomberg:

The valuation for Dubai’s main stock index, the world’s worst performer in 2018, is about to sink beneath a level last seen when oil prices collapsed three years ago.

The average estimated price to earnings in the next 12 months for members of the main index has fallen nearly 20 percent this year and is set to sag below a multiple of 7. That figure was last breached in January 2016, when Brent crude traded at less than $30 a barrel, dragging the Dubai market valuation to the lowest in four years at that time. Real estate stocks have pressured the gauge the most this year.

The negative sentiment has spread throughout the market. Among the 37 members of the DFM General Index, only six are set to finish 2018 with a higher stock price. That’s the fewest gainers for a full year since 2011.

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