Emirates NBD, Dubai’s biggest bank, said the fallout in financial markets may not be over yet as a strengthening US dollar, rising levels of debt and a slowdown in global economic growth continues to weigh on asset prices.
As a result, the bank’s chief investment officer said he was advising clients to be defensive in their investments, and to favour technology and healthcare stocks, as well as gold.
Gary Dugan, Emirates NBD's chief investment officer, yesterday said that 2016 looked like it would be a very tough year for investors.
He said: “Policymakers are still actively involved in supporting economies six years after the asset markets started their recovery, yet global growth continues to disappoint. Our advice is to remain defensively invested and wait for true value to appear before committing to any further significant purchases.”
Volatility in global financial markets has been high in recent quarters ahead the US Federal Reserve’s interest rate increase in December. The sell-off, however, accelerated last month as a litany of woes from crashing oil prices, concern about a further slowdown in China, prospects for more rate rises from the US federal reserve this year as well as rising yields in the junk bond market, assailed markets.
The MSCI All Country World Index, a benchmark of global equities, fell 10 per cent in the third quarter of last year ahead of the Fed’s first rate rise in more than nine years before rebounding 4.6 per cent in the fourth quarter.
But in January alone that global gauge of equities plummeted 7.5 per cent.
At the same time, economists, including those at the IMF, have been downgrading economic growth forecasts for this year while the overall direction central banks around the world may take to try to boost growth is still uncertain. While the central bank of Japan recently cut rates to below zero, the European Central Bank and the US Federal Reserve have not revealed their cards in full, only suggesting that the option for more accommodative monetary policy is still on the table.
“In a world that lacks global growth we still worry about the performance of global equities,” Mr Dugan said. “We advise investors to invest by sector and stock specifics, rather than by country. Our preference is for the technology and healthcare sectors.”
However, Mr Dugan singled out Japan, Europe and India as the bank’s preferred regions for investment.
mkassem@thenational.ae
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Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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UAE currency: the story behind the money in your pockets
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
UAE players with central contracts
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Company%20Profile
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Company%20Profile
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The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
