ADS' Lemand Sees Positive Trend for Middle East Earnings

The video tutorial discusses the current earnings season, highlighting positive trends in the SMP GCC index with 24 out of 123 companies reporting favorable results. It explores growth across sectors, predicting sustained positive trends similar to previous quarters. The GCC market, particularly Saudi Arabia, is viewed positively due to ongoing reforms. In terms of asset allocation, the focus is on overweighting non-cyclical and non-oil subsidized companies, with a tactical approach to other stocks. The fixed income portfolio has shown strong returns, with significant opportunities in the GCC region.

What percentage of companies have reported on the SMP GCC index, and what is the general trend in their earnings?

• 24% with negative earnings

• 13% with positive earnings

• 13% with negative earnings

• 24% with positive earnings

What is the outlook for the GCC region, particularly Saudi Arabia, according to the video?

• Negative due to economic downturn

• Neutral with no significant changes

• Positive due to ongoing reforms

• Negative due to lack of reforms

Which type of companies does the video suggest to remain overweight on in the GCC?

• Non-cyclical companies

• Oil subsidized companies

• Technology companies

• Cyclical companies

What is the performance of the fixed income portfolio in the GCC as mentioned in the video?

• Double-digit returns

• Negative returns

• No returns

• Single-digit returns

What is the expected development in the fixed income asset class in the GCC?

• Stagnation in growth

• Decline in opportunities

• Minimal changes

• Significant development