By: Mahmoud Gamal
Dubai-Mubasher: Subscriptions to the capital increase shares of UAE-listed companies contribute to withdrawing liquidity from local stocks, thus pressuring the markets’ performance down, analysts told Mubasher.
Absence of major investors and Institutional portfolios also led to a decline in the markets’ liquidity, capital market analyst Nawf Al Monairy told Mubasher.
Many investors directed their investments towards Dubai Parks and Resorts’ AED 1.68 billion rights issue rather than low-priced stocks, Al Monairy explained.
Rights holders can subscribe for new shares till 25 May, Dubai Parks and Resorts announced in a statement.
The markets suffer from lack of catalysts, especially after the period of first-quarter financial disclosures ended, Al Monairy said.
The UAE markets are likely to see technical rebounds in the second half of today’s trading session, after the trend of oil and global markets becomes clearer, capital market analyst Mohammed Al Kaabi noted.
Investors should increase their positions in the current period as most stocks entered oversold territory, capital market analyst Gamal Abdel-Hamid said.
Translated by: Julian Nabil
