By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets have been suffering from weak liquidity in the recent period, amid the absence of institutional investments and control of speculations as investors are awaiting new catalysts like first-quarter financials of blue chip companies, analysts told Mubasher.
The markets are witnessing selling pressures due to investors’ lack of confidence as well as low liquidity, in line with the fluctuations of UAE stocks, according to Jamal Ajaj, director of Al Sharhan Shares Centre in Abu Dhabi.
The trend of blue chips is still unclear, especially Drake and Scull International (DSI) which suffered selling pressuring after posting accumulated losses higher that were 50% higher than its capital, the analyst noted.
Quarterly financials did not affect the markets’ general performance until now because the disclosure period did not end yet, in addition to the volatility of results announced, Ajaj explained.
The markets are weighed down by investors’ unwillingness to increase their positions amid fears over the Q1-17 results of blue chip companies especially in the real estate sector, capital market analyst Salem Al Nuwairi told Mubasher.
Translated by: Julian Nabil
