Morgan Stanley favours equities in Saudi Arabia, the Arabian Gulf’s biggest stock exchange, and Qatar among Middle East and North African markets.
"With risk appetite improving on strong momentum for a global recovery, a robust outlook for oil, reasonable valuation and fund inflows slowly picking up, we are constructive on MENA markets," Morgan Stanley said in an emailed note to clients.
"We are most constructive on Saudi Arabia and Qatar," the report said, citing spending plans of the governments.
The bank recommended investors buy shares of Saudi Arabia’s Samba Financial Group, Saudi Pharmaceutical Industries & Medical Appliances Corp., Saudi Arabian Mining Co, Saudi Basic Industries Corp, National Industrialization Co and Etihad Etisalat Co, Qatar Electricity & Water Co, Emaar Properties and Kuwait’s National Mobile Telecommunications Co are also among the bank’s top picks for the region.
Gulf stocks advanced today, sending Qatar’s benchmark index to the highest level since 2008, after growth in US and European manufacturing boosted confidence in the global economic recovery and crude traded near a 27-month high. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.
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