BASI, DFM: No Impetus For Long-Term Recovery Just Yet

As the Middle Eastern trading week draws to a close (end-Thursday), the two markets we highlighted on Monday (Dubai and Bahrain) have not made a decisive break in either direction, and continue to sit precariously on multi-month support. While there is potential for a short-term bounce here, the current global climate for equities and poor macroeconomic outlook for both markets do not suggest particular room for upside. This outlook ties in with our regional growth forecasts, with Bahrain (1.5%), Kuwait (1.7%) and UAE (1.8%) expected to be regional underperformers in 2010. Indeed, the UAE number would be lower

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