Dubai – Mubasher: UAE stock markets have been suffering a liquidity drop due to the absence of institutional investments and the dominating speculative mood, according to analysts.
Market analysts Mohamed Al-Azmi observed that blue-chip stocks saw an increasing selling wave during yesterday's session after MSCI reviewed a number of UAE stocks.
Despite the recovery of oil prices, GCC traders, portfolios in particular, prefer hedging against the current foggy scene through selling their stocks, which by turns weaken market liquidity, Al-Azmi added, expecting the current liquidity drop to continue amid a big downturn of market performance in the long run.
The Dubai Financial market is likely to keep falling towards the 3,100 zone, while the Abu Dhabi Securities Exchange (ADX) is to extended drop towards 4,100 points.
