GCC Market crashing

hi guys, how are you,

thinks all you ppls seem very happy as mkt going up n up.

i m sending charts of GCC market for last three years that appriciated too much but there has been too much downside volatility in these mkt for last two month & all gcc mkt crashed heavily despite surplus budget of 10 billion approx for each country.

So our Indian Stock market will also follow the same time of crash in very near future.

what you think ppls?

review your idea with this.

thanks,

Manish

Attached Images

	Saudi Index.png (33.1 KB, 20 views)
	Kuwait Index.png (31.3 KB, 14 views)
	Dubai Index.png (27.4 KB, 20 views)
	Abu Dhabi Index.png (31.3 KB, 11 views)
	Doha Qatar Index.png (31.7 KB, 10 views)

GCC is the Gulf Co-operation Council

Would have been easier for you to just Google it.

Hey Manish
Good observation, but i'm sorry to say that you are not completely correct. I live in Dubai, thus have a clearer picture of the GCC markets. The last couple of months or so have seen the liquidity draining out of the Gulf markets basically because of the majr IPO's that were introduced. Before this, the IPO had hit the market in late october-november 2005 named Dana gas, which drained the liquidity from the UAE market, Saudi market and Baharain market completely, not to forget the Oman market followed the suit. And this time around, 1st it was Salam Bank in Feb 2006, Tamweel IPO just got over last week, and EITC (a major fund drier) got over yesterday. We saw the fall in these markets coz of these IPO's and not coz they were overvalued.

Also, IPO's out here are very lucrative, I mean to say is that Dana gas IPO was available @ 1 dhiram/ share (12.50 rs/ share). And it was listed on the Abu Dhabi Stock exchange @ 4 dhirams / share (50 rs / share).
Tamweel IPO costed 1 dhiram/share (12.50/share) and is expected to be listed @ 3.5 dhirams (44 rs)

EITC IPO costed 3 dhirams (38 rs) and is expected to go up to more than 25 dhirams (312 rs) in 6 months.

Also, these IPO's have been oversubscribed by more than 400 times. Since, not all shares on these stock exchanges can be bought by non-nationals, and not all the IPO's are available for non-nationals, nationals as well as non nationals jump on the oppurtunity to buy IPO's coz its the easiest was to multiply your money by 3-4 times in less than 3-4 months.
Thus, you see that the main reason for the downfall of the gulf markets in the recent months have been the lack of liquidity. You might see more of this in the gulf markets coz it has been declared tht for 2006-2007, 106 IPO's will be introduced in the market.
Moreover, sensex has way too much liquidity compared to the gulf markets. Out here the gulf markets are yet trying to establish themselves as an international stock exchange and trying to attract FII's, whereas the indian market has FII's in abundance.
So we can be rest asurred, that the Indian Market's fate cannot be assumed on the fate of the gulf markets.

Jai

Jai, your article has been pretty interesting.

The fall in GCC market seems to be unabated. Just now came across this: http://www.ameinfo.com/80371.html

And also: http://www.ameinfo.com/80316.html

And: http://www.middle-east-online.com/english/?id=15978