January effect may not be seen in UAE’s equities | GulfNews.com

January effect may not be seen in UAE’s equities | GulfNews.com:

"Investors in the UAE’s equity markets waiting for the so-called “January effect” may have to hold out as challenging macroeconomic factors continue to dampen trade in the country’s markets.

The “January effect” is a hypothesis that markets see increased buying activity during the month following the drop in prices in December when investors sell shares for year-end tax harvesting.

“Look at the news flow in early 2016. We had this sell-off in China’s equity markets, falling oil prices, and the geopolitical tension in the region, so we shouldn’t expect any rallying in this environment. All lights are red,” said Sebastien Henin, head of asset management at The National Investor."



'via Blog this'