Weak performing real estates shares weighed negatively on the UAE markets
UAE market activity slowed down during FY2011 reaching its lowest levels
Global Investment House "Global" - Kuwait - UAE stock markets continued theirbearish trend for the second year in a row, as the representative indicesreported decline in 2011.This retreat is attributed to low liquidity due toinvestors' risk averse attitude, volatile geopolitical situation in the regionand also due to the postponing on the decision related to UAE entry in MCIEmerging market indices. International factors such as Eurozone crisis,expected lower growth in emerging markets also added to the investors concernsas they stayed away from entering into meaningful positions in the markets.
In terms of market indices, Abu Dhabi SecuritiesExchange (ADX) General Index dropped by 11.7 percent YoY, ending the year 2011at 2,402.3 points, retreating back to the levels of 2009, which witnessed theseverity of the financial crisis. The highest point the index reached duringthe year was 2,775.4 points, on June 19, while it reached its lowest level onDecember 21, at 2,343.3 points. On QoQ basis, Abu Dhabi General Index reporteda fall of 5.2 percent in the fourth quarter, as it continued a series of sharpdeclines experienced since the third quarter, which caused to lose all thegains that had been earned during the second quarter of the year.
In the meantime, Dubai Financial Market (DFM) General Index reported the secondhighest decline among the GCC stock markets in 2011 with an annual decrease of17.0 percent, down to its lowest level since 2004, ending at 1,353.4 points.The highest point reached by the index during the year was 1,681.9 points, on April21, while the index reached its lowest level on December 27, closing at 1,319.4points. On QoQ basis, the index continued its downward journey, which startedduring the first quarter of the year and continued throughout the following three quarters, shedding 5.5 percent in 4Q2011 compared with the 3Q 2011 level.
