Dubai-Mubasher: The UAE markets still lack catalysts amid the volatile global economy and oil prices, analysts told Mubasher on Wednesday.
The markets’ negative performance on Tuesday was generally affected by the drop in oil prices to $37; the lowest level since the beginning of 2009, said Al-Sharhan Centre General Manager Gamal Agag.
Low liquidity still weighs the markets down, yet ADX is backed by Etisalat which attracted “frozen” liquidity after the index complier MSCI added the stock to its EM Index.
He added that investors purchased shares of some stocks like First Gulf Bank, Emaar Properties and Aldar Properties.
Etisalat accounted for 24% of the UAE markets’ weight in MSCI EM index, thus paving the way for repositioning.
He noted the markets still need buying catalysts despite the drop of prices to attractive levels.
Agag expected the markets to continue its sideways trend till the beginning of 2016.
