Market analysis: much volatility as summer slowdown approaches | The National

Market analysis: much volatility as summer slowdown approaches | The National:



"UAE bourses were volatile last month ahead of the country’s inclusion in the MSCI Emerging Market Index, effective from last Monday.



The Dubai Financial Market General Index touched 5,374 points during the month before it closed down at 5,087 at the end of May, recording a monthly gain of 0.56 per cent. Abu Dhabi’s index was up by 4.13 per cent, mainly supported by strong performance from the banking sector. During the month, both Abu Dhabi and Dubai experienced increased trading as both active and passive emerging market funds started to build positions ahead of the index change.



After going through strong rallies in the first four months of this year, the market was finally subjected to a correction in the middle of last month after the announcement of the UAE and Qatar stock inclusions and weights in the index. Most of the blue-chip names corrected by 20 to 30 per cent before staging a strong rebound. Notable movements happened in Emaar, DP World and Abu Dhabi banks."



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