GCC Equities: Still Bearish Despite Short-Term Bounces

September 2008 | Market Strategy

Progress in the US towards a bailout of ailing financial institutions seems to have halted recent slides in GCC equity markets but we retain our bearish stance towards the region for now (with the possible exception of Saudi Arabia). Indeed, we caution that the recent bounces could turn out to be short term in nature and note that almost all EM equity markets have reacted similarly to the US news. Regional fundamentals have not altered: inflation in GCC states remains highly elevated, continuing to eat into company profits; liquidity in the banking sector has dried up; and although the global

If you would like to subscribe to Middle East Monitor, The Gulf and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Middle East Monitor, The Gulf please click on the trial link below.