Stock markets in the UAE are going through a dry spell as far as liquidity goes. The UAE exchanges fell again on Tuesday as foreign and local institutions continued to stay away, forcing brokerage houses to ask, in the words of Ayman El Saheb, director of operations at Darahem Financial Brokerage, “where did the liquidity go and why?”
Combined turnover was less than Dh2 billion on Tuesday and the moribund state of UAE exchanges is starting to worry brokers.
“Is this because of regional tensions or declines in global markets or are brokerages restricting credit to investors?” asked El Saheb in an echo of investor sentiment.
The Dubai Financial Market dropped 0.74 per cent to 5,714 points to bring its weekly losses to 2.03 per cent, while the Abu Dhabi Securities Market declined 1.2 per cent to 4,730.
The capital’s index has lost 2.5 per cent over the past three sessions. Most analysts are pinning their hopes on a rally later this month, with more cash expected to enter the market ahead of the end of the first quarter.
Shuaa Capital escaped the gloom to post a 9.9 per cent rise to Dh8.57 following the publication of a glowing recommendation by HSBC.
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