Gulf investors wary; markets track global moves

Worries over a euro zone contagion and slowing global growth will keep Gulf investors wary on Thursday
Gulf investors wary; markets track global moves
(image for illustrative purposes)
By Reuters
Thu 27 Sep 2012 10:29 AM

Worries over a euro zone contagion and slowing global growth will keep Gulf investors wary on Thursday, but some bargain hunters are likely to return following sharp declines in recent sessions.

Dubai's measure lost 1.8 percent to close at a two-week low on Wednesday after protests in Europe against austerity measures sparked a global sell-off.

"For the short-term, there will be more profit-taking, which is a correlation with international markets - but it's also an opportunity to pick up some stocks are fundamentally strong," says Ali Adou, portfolio manager at The National Investor.

"Valuations in the region are attractive and with the recent sharp drops, opportunities will arise."

A lack of local catalysts will keep investors focused on global markets until third-quarter earnings season kicks off in early October.

Asian shares rebounded on Thursday but sentiment was vulnerable due to uncertainty over a bailout for Spain. Brent futures held steady above $110 on Thursday.

Regional trading is likely to be thin, with Saudi Arabia's bourse closed for the weekend. The kingdom's index slumped to a two-month low on Wednesday.

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