Dubai Financial Market (DFM) closed marginally higher on Monday on the back of lukewarm investors' appetite. The benchmark index closed 0.92 per cent or 15.27 points higher at 1,674.77.
The market breadth however also improved in the later half. Whilst during mid-session only 7 stocks managed to advance out of 18 traded stocks, it improved at the end of trading session when 12 stocks out of 24 traded closed up.
Telecom and insurance sectors were the only two sectors that closed down.
Major gainers included DFM, Dubai Islamic Bank, Arabtec, Union Properties, Aramex, DP World, Emaar, among others.
Analysts say investors are still holding back from taking new positions as they wait for more clarity on the economy and for liquidity to restore.
"Investors' risk appetite seems to have not yet returned because of the major concerns on the uncertainties as well as lack of liquidity in the local market. Investors are also concerned about the outcome of the annual results. Asset management firms as well as foreign institutional investors also don't seem to be taking new position and are holding their portfolio," Krishnamurthy, CEO of brokerage firm Dubai International Securities, said.
He said retail participation is still low and local investors, comprising basically of speculators and day-traders, are not getting enough opportunity to trade because of lack of liquidity.
"There's no bargain hunting, rather it's just closing on a positive note as investors don't want to disturb the market. Certainties continue and investors, especially foreign investors, would like to see more clarity on the economy's recovery," he added.
Abu Dhabi Securities Exchange (ADX) also closed 18.45 points down at 2,731.22.