Local investors have been taking a nap since the crash in January, which ended the recent rally, and appear unmoved by a string of recent bullish reports from big banks like HSBC, Citi, Morgan Stanley and Goldman Sachs about the excellent outlook for profits particular in real estate and banking.
UAE investors are a little bemused by all this sudden interest in their modest stock markets. It is quite flattering to have all this attention but do these new players actually know what they are talking about? The big banks could be excused for finding local investors churlish folk. How can they be so gloomy with oil at $105 a barrel (at the time of writing) and little to suggest that booming oil revenues will come to an end anytime soon? You just need to find the right stock to lever into the oil boom and you are away. Perhaps they overestimate the sophistication of the UAE stock markets. The tomes of analysts are not generally appreciated, something far closer to the animal instincts of fear and greed is what drives this market.
1 comment:
Actually it is what drives all markets at all times but perhaps it is more obvious here in the UAE.
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