Arab Emirates’s most attractive marketsTruth Consultancy
Experts draw for «economic statement» roadmap promising investment
Abdel Fattah achieve-Montasser
Date: May 22, 2016
Financial experts draw a roadmap for investment opportunities and promising sectors of the local stock for all segments of investors, pointing out that there are three sectors of the local markets fit a long-term investment, which ranges between 3 and 4 years include most of the shares »communication« and »banks« and the number of shares of the services, especially related to tourism, hotels , indicating that investment in most listed companies shares of the three sectors is characterized by achieving strong annual return of undistributed of these companies that achieve a strong and consecutive growth rates of earnings while investing in the stock of large liquidity needs to a certain extent due to the rise in most of the stock prices of these sectors also moves shares of these sectors are far from strong volatility quiet.
They stressed that despite the volatility that has happened in the local stock markets during the current month, but they are still among the highest the stock attractive at the level of Arab stock exchanges in terms of both indices PE or a multiple of book value to market as indicators key to making investment decisions in the financial markets or in terms of the outlook positive associated with the overall performance of companies and banks listed markets.
They said that there are sectors include investment opportunities the average term of between one and two years and include a range of equity sectors »Industry« and »insurance« and »energy« and »Transportation« and »Investment and financial services« pointing out that the opportunities available for investment short-term periods of less about a year and up to a day in cases of daily speculation mainly concentrated in the sectors »property« and »consumer goods« in addition to some of the shares of the former sectors where this segment of the stock down prices generally feature some of which up to nearly half of the AED sometimes as that this chip stocks prices are moving rapidly to a very up and down, making it more suitable for small shareholders who enter the markets have been forced out abruptly to their own circumstances, they can keep an eye out timely exit minimal loss or the best profit potential may occur in a relatively short time intervals.
Economic advisor Mohammed Saeed Mohammed Virtual He said that the UAE markets are at the forefront of Arab countries in terms of lower average prices of shares compared to the results of subsidiaries and dividend higher profits that are higher regionally, explaining that the standard repeater market profitability is calculated by dividing the average price of the market values of the shares listed on the profitability of companies stock close to 10 times or less the market is more attractive for investment than larger markets with repeaters is doubly book value to the market near the one-time or less than the best and most attractive multiples compared to companies with the most multiplier than once.
He explained that the bis-profit DFM to another market 12 months amounted to about 10.7 times multiplier to the book value to the market 1.3 times while the repeater profitability Abu Dhabi Securities Market amounted to about 11.9 times the multiple of book value to market 1.5 times compared to the other Gulf states major bourses For example, it is noted that the repeater profitability of the Saudi market is estimated at about 15.8 times and double the carrying value to the market is 1.6 times the repeater is estimated repeater profitability of the Qatari market at about 13.2 times and double the carrying value to the market 1.6 times as estimated repeater profitability of the Kuwaiti market at about 14.5 times and double the carrying value to the market once one estimate repeater profitability MSM at about 12.3 times multiplier and the carrying value to the market and 1.3 times estimated profit repeater Bahraini market at about 10.3 times book value and the multiplier to 0.7 times the market, noting that the Bahraini market is weaker regional markets activity.
For his part, Reda, Director General of the company »Truth« Economic Consultancy that despite the volatility in the markets in recent weeks, but they still constitute investment attractive channel of capital that are looking for a private in the medium and long term prospects are good.
He pointed out that in light of the weakness of the return on bank deposits tend liquidity mostly to selected stocks provide higher returns and be more feasible to invest in particular sectors of telecommunications, banking and property shares where they are rewarding annual dividend on seeking shareholders’ investment medium and long term.
He pointed out that the results announced by companies, banks, public shareholding and dividend strong profits made UAE stock after lower prices more attractive than other regional markets expected to witness the coming weeks selective and gradual assembling of the shares of blue chip companies that have announced quarterly results good operations.
He stressed that the key indicators for the UAE markets with good results for companies and banks listed by make it the best among the region’s markets, where banks and companies have become leading shares after the good results are encouraging, especially telecoms and real estate sector.
He Hamood Abdulla al-Yasi, CEO of Hicks Group believes that the domestic stock markets provide good investment opportunities during the next phase, but sectors selected mainly from the point of view associated with telecommunications, tourism, hotels and service companies in general, confirming the presence of a positive outlook for the market in the next phase.
He said that the market is heading for a state of balance, pointing out that awareness began rising markets in general and the impact of rumors began to shrink dramatically.
He stressed that the most appropriate ways to invest in stocks is to follow the retailer to buy the stock style operations even if the investor is going to invest in one share a certain amount it is best to buy them in batches intervals medium can configure the price level for a balanced portfolio of stocks.
Jamal Ajaj director general Alsharhan center of stocks, bonds and stressed that the local markets provide diversified investment opportunities for the categories of investors during the next phase, especially with the arrival of prices of a large number of shares listed on the local stock markets, companies have less of DRAM, giving an impetus to the movement of trades in the next phase with the opening of the way for the entry of new segments of investors can handle is limited liquidity in the market after it was investing in the stock markets in the past years concentrated on a slide and wealthy businessmen.
He added that lower prices to this extent doubles dividend for new investors who are buying these new prices, stating that, for example, an investor who will buy ten thousand dirhams shares at half dirhams per share or less, it will have 20 thousand shares or more in the case of the adoption of a dividend 10% per share, for example, the rate of return would be 20% or more on the amount that the purchase was done which is a high return. The number of companies that revolve around the shares prices of DRAM about 40 companies account for about 70% of the total number of companies which has been traded in recent sessions.
He said that this year saw the entry of new segments of investors »with limited liquidity« who focus on investing in stocks »cheap« where the increased presence of this new segment of the factors affecting the market in the recent period because they are buying at the low stock price just below considering any other data and when they notice any height, even a small price they sell immediately, which stands in the way these high prices low stock where there is no time flying the stability of prices upward.
Mohammed Saeed Mohammed virtual expected to be forwarded to a large proportion of bank deposits into the local stock markets in the coming period, in light of the continued low interest rates on deposits with the arrival of many stock prices to attractive and stimulating the levels of investment, which is expected to raise yields traded stocks compared to revenues of interest on deposits.
Jamal Ajaj said that corporate earnings and dividends, especially banks helped re-investment attractiveness UAE markets to domestic investors before foreign and stimulated good evaluations lot of investors to pay greater attention to the fundamentals of the local economy and the performance of listed companies, especially since the book value of many stocks have become without a time The repeater profitability of about 7 to 8 times.