What is next for financial markets?
In this exclusive interview, Fathi Ben Grira, CEO, Menacorp talks about financial markets and advises investors in the GCC to take advantage of currencies variations.
What would you say about the performance of Abu Dhabi Stock Exchange and the Dubai Financial Market?
These two markets witnessed a very strong growth in 2013 and 2014. The correction we expected for 2015 happened but it was amplified by external factors such as the drop of oil price, the geopolitical context of our region, a strong dollar and the repercussions of weaker growth in emerging economies. 2016 didn’t start well in terms of performance but we noticed that smart investors were taking advantage of cheaper valuations. Things got better during the past weeks. In a nutshell, I would say that these markets offer good opportunities for all those who believe in a strong fundamental story.
With talks over a new financial crisis do you think the region could be in jeopardy?
Our region is not isolated from the rest of the world and it is natural that we have to face repercussions when there are global challenges to be tackled. The financial crisis is a reality: global markets have been under serious pressure and undesired ripple effects are occurring in various sectors and industries. However, I would not say that it can jeopardize the future of our region. On the mid and long term, we offer one of the most exciting opportunities in terms of growth.
What do you expect from emerging market stocks this year?
Even if emerging markets have been characterized mainly by gloomy news, smart investors are seeing opportunities and have started to cherry pick and accumulate the undervalued stocks of companies with sound businesses and good management. Opportunities are around the corner for those who are willing to do their homework correctly and who will not be afraid to face strong volatility during the coming months.