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Trump Effect: US traded stocks on top for GCC investors

Saxo Bank, the online multi-asset trading and investment specialist, has revealed US based companies dominated the five most traded stocks by its GCC-registered traders in the first quarter of 2017.

After US financial markets responded positively to President Donald Trump’s election victory on 8 November last year, reflation trade has continued to accelerate since Trump’s inauguration on January 20, as evidenced by the Dow Jones Industrial Average climbing 6.12 per cent and the S&P 500 index notching a 5.32 per cent gain during Trump’s first 100 days.

The Trump effect appears to have encouraged regional investors, with US companies including Panera Bread Co., The Madison Square Garden Co. and Inc. proving to be hot picks for regional investors in Q1 2017.

In order of ranking, Saxo Bank’s top five most traded stocks by regional investors in Q1 2017 were: Unilever Plc, Panera Bread Co., The Madison Square Garden Company, Danone and Inc.

While the improvement of global economic data in Q1 had a positive impact on US reflation trade, the positive return in equities may yet belie intensifying doubts about Trump’s ability to overhaul taxes, loosen Wall Street regulations and boost infrastructure spending – all of which could curtail recent growth.

Until then, US markets look set to continue to perform, according to Mario Camara, Head of Saxo Bank Dubai.

Camara said: “Many experts seem intent that US equities are due for a correction in coming weeks and months. While that remains to be seen, what cannot be argued is that regional investors have responded very positively to the Trump effect in Q1.

“Our regional clients have reacted very positively to the high performance of US markets and their ongoing resilience, as highlighted by the Nasdaq Composite Index closing at a milestone of 6,000 for the first time ever in the last week of April.”

The most traded Q1 stocks on the SaxoTraderGO platform, globally, were Apple, Amazon, Facebook Inc., Goldman Sachs and Alibaba.