Encouraging time for investors
The UAE stock markets have been rising strongly, making up substantial ground to compensate for last year's slump. The Abu Dhabi Stock Market index has climbed by 53 per cent and Dubai Financial Market's by 45 per cent, the latter managing to hold onto the 6,000 level which it reclaimed this week.
It has been an encouraging time for investors. The shame would be if those enticed into the market last year and had their fingers burned were not present now: a double disappointment.
In fact the real action was delayed until the fourth quarter. Following the knock-on effects globally from the US subprime crisis and subsequent credit crunch, the focus returned to the domestic growth story.
It has been an encouraging time for investors. The shame would be if those enticed into the market last year and had their fingers burned were not present now: a double disappointment.
In fact the real action was delayed until the fourth quarter. Following the knock-on effects globally from the US subprime crisis and subsequent credit crunch, the focus returned to the domestic growth story.
Buoyant third-quarter results and the decline of interest rates following the US Federal Reserve's about-turn have provided the recent motor. Valuations had dropped in any case to attractive levels, and it was just a case of when sentiment would revive. An increasing institutional presence has helped too, creating momentum.
Markets will go up as well as down: an age-old truth which newer investors are happier to discover. With savings earning trivial returns again, it is only natural that asset markets draw the cash.
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