The DFM after Eid
During the summer months, many investors left Dubai, so the market stagnated and sank.
During Ramadan, many Muslims turned their thoughts to matters more important than investments, so the market stagnated and sank.
But after Eid, investors were expected to swarm back into the UAE markets and end the decline.
And indeed, after Eid, investors did swarm back into the markets. And sold heavily.
The decline has been severe enough to make the front section of the local papers, which explain that investors are selling their stocks to raise money for some upcoming IPOs.
During Ramadan, many Muslims turned their thoughts to matters more important than investments, so the market stagnated and sank.
But after Eid, investors were expected to swarm back into the UAE markets and end the decline.
And indeed, after Eid, investors did swarm back into the markets. And sold heavily.
The decline has been severe enough to make the front section of the local papers, which explain that investors are selling their stocks to raise money for some upcoming IPOs.
posted by Dubai@Random at 3:28 am
1 Comments:
Good stuff, D@R.
Seems to me investors have lost confidence in the DSM. The stuff about upcoming IPOs is whitewash, just excuses for the decline.
There seems to be no logical reason for individual investors to swarm back into the market, other than to try and recover the massive losses they've suffered during the past year. But finally individual investors seem to have realized that to make money on stock markets is not that easy, and whatever goes up MUST come down!
In addition, I believe many of the investors who were active in the DSM in days gone by borrowed most of their investment funds. Now that banks see no hope of recovering loans advanced to investors, they have tightened credit with the result that there is hardly any liquidity in the market.
I suspect this situation will continue for a while....at best the index will remain at current levels; more likely, however, the index will slowly slip to sub-400 levels.
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