UAE stocks significantly undervalued

UAE stocks significantly undervalued

New survey says that investors believe stocks on Dubai and Abu Dhabi exchanges are undervalued.

June 15, 2010 3:42 by Samuel Potter

Stocks on the Dubai Financial Market and the Abu Dhabi Stock Exchange are seen as undervalued, reports Emirates Business.

Quoting Shuaa Capital’s GCC Investor Confidence survey, the paper says almost a third of those surveyed believe there is potential for a rebound on the DFM as stocks remain undervalued. More than 31 percent also believe the ADX has a positive outlook.

The paper fails to explore the remaining two thirds opinion, however.

In what was a difficult month for the global economy, May saw all Shuaa Capital GCC Investor Sentiment Indices decline, according to the report. The Investor Sentiment Index and all sub-indices have a range between 0 and 200. A number greater than 100 represents positive sentiment, while a number lower than 100 represents negative sentiment. The Index dipped by a marginal 5.7 points in May, although it is still in positive territory at 107.4.

Leading the slide was the UAE Index, which slipped 14.7 points to 104.7. Qatar also recorded a significant decline as it dropped from 131.9 points in April to 121.9 points in the latest survey.