By: Mahmoud Gamal
Mubasher: There are three main factors behind the current weak performance of the UAE bourses, topped by investors’ concern over listed firm’s exposure to The Abraaj Group recent crisis, in addition to the unjustified decline of Drake & Scull International’s stock, analysts told Mubasher.
By the end of Tuesday’s trading session, the Dubai Financial Market’s (DFM) general index fell 1.11% to 2,836.01 points, while the Abu Dhabi Securities Exchange’s (ADX) general index edged up 0.63% to 4,565.78 points.
Companies’ non-interaction with the Securities and Commodities Authority’s (SCA) decision to announce their ties and exposure to The Abraaj Group crisis is one of the main reasons behind the local stock market’s negative performance, market analyst Ziad Al-Qamizi said.
Many firms are hesitating to uncover their exposure to the crisis prior to the end of the official investigations and revealing the real volume of losses, Al-Qamizi highlighted.
He also added that Drake & Scull’s stock, dragged down 10% by selling pressures at AED 0.810 on Tuesday, is one of the factors weighing on the local bourses, pointing out that the company has not revealed any information that could impact the stock negatively.
Moreover, merger negotiations between Eshraq Properties and Reem Investments have failed, which will negatively affect the UAE stock markets, he indicated.
