got its revenue mojo back in the second quarter, exceeding
earning expectations while reporting higher advertising revenues and lower costs.
Additionally, with upcoming financial result of companies, we expect
earning expectations to play its role in driving the index.
The Abu Dhabi index saw a limited downside on Thursday as outperformance compared to the Dubai index continued on the back of strong
earning expectations in banks and telecom stocks.
He wrote in his latest market commentary that the reason for this surprising turn is that
earning expectations are increasing again.
Consensus numbers may not be the most accurate outlook for future
earning expectations since they tend to be "static" in that they represent the situation that existed at the time the reports were prepared.
There are a couple of reasons for this bullish trend in stock market including good dividends, better
earning expectations, and the country's picture look promising for 4-5 per cent GDP growth in Abu Dhabi and 4.5 per cent in Dubai, Mohammed Ali Yasin, managing director of National Bank of Abu Dhabi Securities, told Khaleej Times.
This suggests to us that as
earning expectations are tempered, steel stocks may face further weakness.
Speaking at the NAIOP-sponsored "CEO Perspectives" seminar last week, Glenn Rufrano, CEO of Cushman & Wakefield, and Mitchell Hersh, CEO of Mack-Cali Realty Corporation, agreed over-inflated FFOs (Funds From Operation) and
earning expectations, coupled with a disregard of basic market fundamentals had a major role in the market crash.
Cements stocks remained in the limelight on the back of handsome
earning expectations. "Bullish activity continued as SECP and KSE met on leverage product approval for retail investors," said Shahzad Chamdia Sec senior analyst Ahsan Mehanti.
Morrisons was identified as the "least unattractive" investment and the most likely of the three supermarkets to meet consensus
earning expectations next year.
Citigroup also significantly increased its yearly
earning expectations for 2007 to 2009.
California-based Fleetwood Enterprises on Tuesday lowered its
earning expectations for its third quarter ending Jan.
