Market to remain sluggish

The UAE bourses are likely to trade in sluggish mood this week, as investors’ appetite remains weak amid the uncertainty over global growth outlook.

Analysts said markets would remain range-bound in thin trade as major investors are wary of entering the market at new positions ahead of Eid Al Fitr. They were of the view that day-traders will continue to rule the markets until the key players give up their cautious approach towards equities.

Last week, Morgan Stanley slashed its global growth forecast for 2011 and 2012, expressing concerns on the US and eurozone and said they are “dangerously close to a recession.”

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