Stock markets in the GCC have been impacted by the current regional civil unrest in the Arab world, with company valuations discounted compared to prior levels, increasing finance costs and falling investor risk appetite being a feature of the first quarter of 2011.
The equity markets in the region have witnessed both depressed volumes and market value erosion, which was at their lowest levels in February this year.
The brief rally upon releasing companies annual results gave hopes to retail investors.
However, there is no much positive news ahead in terms of significant announcements or unexpected robust developments.
Analyst Waddah Al Taha told Sama Dubai TV that the decline in UAE bourses for the last several days amid thin trading triggered investor concerns. He attributed this downtrend to lack of awareness among traders.
Al Taha expected the twin exchanges to rebound at the end of this month, fueled by local and foreign portfolios that seek to benefit from the current attractive prices of stocks.
