By: Mahmoud Gamal

Mubasher: There are 10 factors behind the UAE bourses’ current weak performance, including concerns over the diplomatic relationship between Turkey and the US, which could harm some investments of local firms ahead of summer and Eid Al-Adha holidays, analysts told Mubasher.

Restructuring

The local markets currently witness recession due to weak liquidity, in addition to the decline in stock prices as most of the listed companies, mainly Dubai-listed firms, inclined to restructuring, such as Marka, Drake and Scull International (DSI), and Union Properties, managing director of asset management at Menacorp Tariq Qaqish said.

The Abraaj Group crisis and listed-firms' exposure to it is one of the main factors that negatively impacted investors and pushed them to be more cautious and concerned, Qaqish pointed out.

The diplomatic tensions between the US and Turkey have also affected the traders, he indicated.

Moreover, the solid value of the dollar and the tendency towards raising interest rate ahead of the summer holiday, Eid Al-Adha, and the annual holidays are among the factors, he added.

Qaqish stressed that traders are anticipating the remaining financial results for the second quarter of 2018 and projected calm trades to maintain this week amid new catalysts.