Stockbrokers in the UAE fear many more securities firms are likely to close their doors in the second half of the year as trading volumes return to pre-rally levels.
"Everyone is really scared," said Ahmed Dibajeh, a broker at Investor Financial Brokerage in Abu Dhabi. "The situation is very bad because there isn't enough investor money to go around and because of the continued pressure on the financial situation of many of the brokerage companies."
First-quarter trading activity surged from a low of Dh62 million (US$16.8m) a day in January to a peak of Dh981m in March as sentiment and investor appetite for riskier asset classes improved, causing many brokerages to postpone plans to shut down.
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