Wednesday, 14 September 2011

Bank liquidity, debt spreads may lift UAE stocks-exec | Reuters

Increased liquidity in the banking system and tightening debt spreads could spark the UAE's moribund equity markets into life and early investors can pick up stocks on the cheap, the chief executive of Dubai's Daman Investments said on Tuesday.

Many investors have given up on UAE markets -- trading volumes are poised to slump to a seven-year low in 2011, while Dubai's index is down 77 percent from a 2008 peak. Abu Dhabi's measure has lost 50 percent.

"UAE equities today look lethargic. It's not a pretty picture," Shehab Gargash, Daman Investments CEO told reporters. "UAE markets have been very badly battered -- there's not much downward space left."

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