Manama, Kingdom of Bahrain, 3 March 2014: GCC equities got off to a flying start in in the first two months of 2014, with the UAE and Qatar markets showing substantial strength. Dubai and Abu Dhabi’s stock indices appreciated by 24.17 per cent and 15.2 percent respectively, on a very high turnover, and led largely by retail participation. Qatar rallied 13.41 per cent year to date and due to buying by foreign institutional investors.
Since the momentum shows no sign of abating in these two markets, investors are advised by the writers of the report to focus on earnings growth and not rely solely on a rise in multiples to drive stock returns, as has been the case for the past year. Thus a greater emphasis on earnings should be the case - stocks that have the most room for earnings growth and that can surprise on the upside, are the preferred picks.