By: Mahmoud Gamal
Dubai-Mubasher: Offering of UAE-listed companies’ capital increase shares and bonds weakens liquidity, thus pressuring UAE markets’ performance down, analysts told Mubasher.
Dubai Parks and Resorts opened the subscription on 12 May for its AED 1.68 billion rights issue, while subscription to Dubai Islamic Bank's (DIB) new shares will take place on 7 June.
Subscription to Ajman Bank's new shares and Abu Dhabi National Insurance Company’s (ADNIC) convertible bonds began on 30 and 24 May, resepctively.
Most traders tend to liquidate their stocks and subscribe to shares or bonds, capital market analyst Nawaf Al Shammari told Mubasher.
Al Shammari went on to say that the interest rate on some issued bonds reached 7.5% to attract institutional investors.
Some local portfolio investors are keeping their cash outside the markets amid anticipation of Morgan Stanley Capital International’s (MSCI) revision in the coming days, capital market analyst Mohamed Al Azmi noted.
The markets are expected to see a technical rebound in the second half of today’s trading session, after the global and oil markets’ trend becomes clearer, UAE markets analyst Salam Saeed told Mubasher.
If Dubai bourse manages to stabilise above its resistance at 3,325 points, its main index will rise to 3,351 points, Saeed explained.
However, the analyst noted that a break above 3,280 points will push the index to fall to 3,255 points.
Translated by: Julian Nabil
