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Liquidity flow into UAE markets awaits MSCI revision

Liquidity flow into UAE markets awaits MSCI revision
UAE markets suffer from lack of catalysts (Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal

Dubai-Mubasher: UAE markets are currently being pressured by negative expectations ahead of the revision of UAE indices by Morgan Stanley Capital International (MSCI), which is hindering the flow of higher liquidity, according to capital market analyst Mahmoud Abu Zeid.

The research firm is likely to downgrade its ratings for UAE indices in the report scheduled for release later this month, against the increase of China's weight in the MSCI index, Abu Zeid added.

UAE markets suffer from lack of catalysts, especially after the end of first-quarter financial disclosures and the approach of the summer vacation and Ramadan, the analyst explained.

The indices are likely to gradually fall till they reach their support levels at 3,000 points for Dubai’s main index and 4,000 points for Abu Dhabi’s, Abu Zeid noted.

On the other hand, Jamal Ajaj, director of Al Sharhan Shares Centre in Abu Dhabi, told Mubasher that he expects UAE markets to continue their positive rebound as blue chips hold.

Translated by: Julian Nabil