GCC bourse regulators urged to curb speculations

Gulf bourse regulators should take measures to put an end to speculative trading which has hampered sustained market improvement and inflicted heavy losses on millions of regional investors, according to a semi-official study.

The problem is complicated by lack of transparency market makers, and the random entry of foreign investors who had helped stoke speculation in the stock exchanges of the six-nation Gulf Co-operation Council (GCC), the government-controlled Emirates Industrial Bank said in its monthly bulletin.

"Changing these trends in GCC markets and converting them from speculation halls into development centres is possible through the development of new legislation that will curb speculation, spread investment education and strengthen transparency and disclosures. Another crucial element is the establishment of market-makers, which can play a key role in stabilising these bourses."