It’s crunch time for UAE stock markets

Both the Dubai and Abu Dhabi exchanges performed abjectly last week, with the former falling 1.35 per cent while the latter lost 2.49 per cent, and brokers are pessimistic they can mount an immediate recovery.

“This week will be extremely important,” said Ayman El Saheb, Darahem Financial Brokerage director of operations. “With two weeks before the end of the quarter, speculators should start to play the market.”

If trading does not pick this week, brokers will see this as a worrying sign with a correction probably imminent.

In the absence of major domestic news, the UAE exchanges are following the lead of the major global markets, much to the frustration of local brokers.

International indices are plunging amid a worsening economic situation in the US, yet the UAE economy is buoyant, so local shares should be on the up, not sliding down. “Prices will become too tempting soon for funds not to start acquiring, although it’s not true to say there isn’t any buying at the moment,” said Saheb.

“Some investors are trying to lock in good prices now, but with the market going down, they may be left with losses.”