Regional markets face volatility

19 August 2009

Volatility set to return to equity market as fundamentals do not support valuations, says Saxo Bank

Regional markets are heading for a period of volatility because economic fundamentals do not support current valuations, according to Yaser Rawashdeh, senior sales trader at Denmark’s Saxo Bank in the UAE.

“We are now heading into a period of high volatility, which we expect to begin in the next month. The worst of this financial crisis may be over, but the fundamentals do not support current valuations,” says Rawashdeh.

“We see the current rally as unjustified,” he adds. “Volatility will be a trend throughout global markets.”

Rawashdeh adds that Saxo bank is working on a sharia-compliant version of its SaxoTrader platform, which enables investors to trade in multiple asset classes.

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