Dubai – Mubasher: The UAE bourses are testing significant levels amid lower liquidity and investors’ tendency to the new initial public offerings (IPOs), analysts told Mubasher.
By the end of Sunday’s trading session, the Dubai Financial Market (DFM) slipped 0.34%, and the Abu Dhabi Securities Exchange (ADX) closed 0.11% down at 4,282.27 points.
Abu Dhabi National Oil Company (ADNOC) on Sunday launched an IPO to sell about 10% to 20% of ADNOC Distribution’s total shares.
Investors are currently preferring not to trade on stocks, but to participate in the new IPOs, analyst at Mubasher Financial Services Karim Al Shammas said.
The lack of liquidity recently has affirmed traders’ distrust towards the markets, Al Shammas added.
Investment opportunities have risen lately in the UAE markets despite seeing low levels for months, he highlighted.
He further noted that the UAE markets are likely to lure more foreign and institutional investors, especially after the Dubai Financial Market general index (DFMGI) is hovering near 3,450 points.
The analyst stressed that ADNOC Distribution’s IPO would attract huge capital after it ends.
