Two investment experts said that many of the traditional investment sectors were affected negatively by the repercussions of the emergence of the emerging "Corona virus", but they confirmed that there are several sectors called "defensive", which continued to work strongly, most notably communications, health, and insurance, as well as food, agriculture, and transportation industries. And storage and delivery, advising investors to invest in those sectors.
And to the «Emirates Today», that at the level of financial markets there is room to seize opportunities on low shares, but on the condition that they are not speculative, stressing the importance of keeping money within the state and circulating it in the local economy within the active sectors.
Defense sectors
In detail, Mohamed Ali Yassin, CEO of Strategies and Customers at Al Dhabi Capital, said that many traditional investment sectors have been negatively affected by the repercussions of the emergence of the emerging “Corona” virus, such as tourism, services, hotels, and real estate, along with oil price declines that have affected the oil industries and banks. And its profits.
He added that the results of the first quarter of this year for a number of banks and companies reflect this, indicating that this matter may take several months to come until these sectors recover, but it is better to follow the traditional sectors from afar.
Yassin added: “It remains for investors to go to the sectors called (defensive), which are still working and benefit from what is happening, especially the telecommunications sector, given the demand by the dealers and the continued ability to distribute good profits”, indicating that this is related to The stock markets.
The insurance sector
Yassin stressed that investment in the insurance sector is one of the most promising sectors, given the low insurance claims due to the government support that was provided to the "Corona" patients, in addition to the decrease in accidents due to the decline in traffic, in light of the precautionary measures and staying in homes.
He pointed out that investment in the food and agricultural industries is also considered one of the most promising sectors during the coming period, because of the state’s plans for self-sufficiency and food security, as well as the logistics and transportation sector, as the current crisis demonstrated the need for it, while it is expected to continue Its appeal during the coming period, and possibly until the end of next year
Yassin stressed the importance of keeping the money inside the country and circulating it in the local economy within the active sectors.
Seize opportunities
For his part, Tariq Qaqish, Director of Asset Management at MENA Corp. said that most of the investment sectors were negatively affected by the spread of the Corona epidemic, especially tourism, aviation and real estate, but several sectors remain positively affected, most notably the health sector.
Qaqish indicated that at the level of financial markets there is room to seize opportunities on low shares, but on the condition that they are not speculative, in addition to the food sector that has a large focus by the government, as well as transportation and storage, pointing out that money can also be directed to invest in government bonds, being Guaranteed and with good return.
He added that the support packages provided by the UAE government and the Central Bank are large, that will support the economy during the coming period, so that companies can recover and rearrange their affairs.