GCC investor confidence drops in April - Shuaa

Latest research shows 7.7 point drop in sentiment index, driven by Saudi Arabia, Oman.
GCC investor confidence drops in April - Shuaa
INVESTOR CONFIDENCE: dropped in April, according to the latest research by Shuaa Capital. (Getty Images)
By Shane McGinley
Mon 17 May 2010 05:26 PM

GCC investor confidence fell 7.7 points in April, but still remained positive at 113.1, according to the latest research released in Monday by Dubai-based investment bank Shuaa Capital.

Shuaa Capital’s latest GCC Investor Sentiment Report surveys investor confidence across the GCC and its index has a range between 0 and 200 and a number greater than 100 represents positive sentiment while a number lower than 100 represents negative sentiment.

April’s index dropped 7.7 points to 113.1, with the decline largely driven by Saudi Arabia and Oman, as their indices dropped by 7.9 and 4.6 points to 128.4 and 112.1 points respectively.

Bahrain was up 2.4 points to 106 and the jump was the island state’s highest on record since November 2009. However, the UAE index dipped one point to 119.4 points.

“It was particularly interesting to see that survey participants view UAE stocks as so increasingly undervalued, which shows that investors have faith in the long-term fundamentals of the Emirates,” said Oliver Schutzmann, author of the Investor Sentiment Report and chief communications officer of Shuaa Capital.

“This comes as Western market stock valuations declined marginally according to our surveyed investors with the Dow Jones 30, Eurostoxx 50 and FT-SE remaining in neutral territory," he said.  

"Investors were also asked where they would be putting their money over the next six months and again the UAE came out on top. The UAE was the only destination with a positive figure in April, rising 15.3 percent to 22.4 percent on balance,” he added.

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