MARKET TRUMOIL: Close to 35% of the respondents believe that the recovery is only a short term improvement. (Getty Images)

More than one-third of respondents to an online poll feel that it is not safe to return to the stock markets despite a recent revival on many of the Gulf's stock exchanges.

The survey carried out by Arabian Business shows that 40 percent that it is not safe to return to the stock markets.

Close to 35% of the respondents believe that the recovery is only a short term improvement and many bourses will suffer later in 2009.

Though 14% of the people believed the current trend in the Gulf’s bourses to be good news, they feel that more bad news could still be on the way for investors.
 
Only 11% of the respondents believe that this is solid evidence that the recovery from the global crisis is well underway in the region.

Just last week, according to  Reuters report, analysts had warned that the current market rally - four of seven markets are at 2009 highs in rising volumes - is unlikely to be sustained, not only because stocks are overpriced but because the economic downturn is expected to send many wealthy expatriates home for good.

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Pump and dump makes a comeback
Posted by Geriant, Dubai, UAE on 7 June 2009 at 04:35 UAE time

One of the reasons to exercise caution in Gulf markets is that share ramping is clearly happening, particularly in big property stocks. The rumour mills are working overtime, so there is little concrete information to base trades on. When you follow the hyped up press releases and wild claims by developers it is clear that reality has been the chief casualty of this economic war.

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