Namara Wealth Advisors CIO Gary Dugan weighs in on the GCC equity market selloff, and talks about the price of oil. He speaks on “Bloomberg Markets: Middle East.”
Egypt and Kuwait bucked the trend, but Middle East equities have closed weaker on Monday amid a global selloff that saw more than 1000 points being shaved off US stock markets.
Also regional borrowers like Saudi, Kuwait and other GC countries are rushing to the bond market before the Fed speeds up interest rate hikes and already GCC countries have issued bonds worth $13bn in Januray, best on record.
“I expect markets to be down 2% maybe 3% because there are no inflated levels of evaluations in the region as there was in the US with the DOW up to 25,000 levels,” said Dugan.
“There is a good bedrock of investors who are committed to the market and don’t feel the need or have the reaction to sell.”
Dugan said markets are goingto do well, especially that oil prices are way higher than what the region expected them to be.
“So at $60-$70, or even $50-$60 per barrel, oil prices are significantly higher than what they were expected to be 6-months ago,” he added.