In his comment on Monday’s trade sessions in the UAE stock markets, capital market expert Wadah Al-Taha highlighted that a common phenomenon that is affecting the Dubai Financial Market (DFM) negatively is the recurrent speculations on Arabtec Holding’s share due to unconfirmed rumours about Arabtec’s former CEO Hasan Ismaik.

The rumours claimed that Ismaik will sell half his stake to Abu Dhabi-based state fund Aabar Investments at a selling price ranging between AED 5.0 and AED 5.5 per share, whereas Arabtec closed on Monday at AED 4.70.

This non-disclosure has a major impact on market trades, which are centred on one share, Wadah told Mubasher Radio, adding that this is not normal. Moreover, liquidity is moving from the Abu Dhabi Securities Exchange (ADX) to the DFM, he noted.

The ADX benchmark index had ended in the red on Monday, edging down slightly for the second successive session, shedding 0.05% or 2.68 pts to 5156.99 pts. Around 92.555 million shares were traded at a turnover of AED 319.764 million, which is very low, the expert commented.

As for the performance of Emaar Malls Group, it has been noticed that trades were low to an extent, Al-Taha said, noting that trades are expected to increase gradually towards the end of the initial public offering (IPO).

Accordingly, the lack of liquidity in the markets is temporary and will only last for a few days, he highlighted, adding that subscription often comes in the final IPO sessions.

Moreover, this IPO period is a short one, especially since it is expected that Emaar Malls Group will be listed on October 2.