This summer, the MSCI review of the UAE markets — for their possible inclusion in emerging market indexes — could be used to make some money. While there is no guarantee that the UAE will get emerging market status, the volatility caused by speculation could be utilised by short-term traders.
"Last year we witnessed an almost 6 per cent rise in the week before the MSCI decision in June. This year, we expect about the same," Sa'ad Al Chalabi, technical analyst of Al Ramz Securities, says.
The possible upgrade of the UAE from frontier to emerging will have a positive effect on market liquidity. Tareq Qaqish, deputy head of asset management at Al Mal Capital, believes speculators will also see this news to create short-term opportunities.
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