In June, DFM fell 22.50 per cent while ADX fell by 13.37 per cent. But in July, DFM surged 22.58 per cent to lead the global gainers list, followed by ADX with 11.07 per cent and
The rally is led by real estate, banks, finance and investment shares.
He said the market has been very volatile. The volatility has been going on for the last three months.
"We saw a very strong price appreciation before the inclusion of the
He said there is still uncertainty surrounding the shares but it is back to more reasonable level of Dh5 after peaking at Dh7.5 for no fundamental reason.
"The fundamentals in the
In 2013, DFM was the second-best performer with 107.69 per cent after
So far this year, DFM is up by 43.43 per cent and ADX by 17.82 per cent despite facing turbulence.
"The trading volume is still below average. The main reason is due to low trading on
Traders are not ready to build any "new positions" despite strong earnings results as it is summer season.
Yasin said that first-half earnings reports across the board are strong, especially from the banking sector.
But the stocks could only rise 3.81 per cent in July on fears that bond default will destabilise the economy.
The index fell 8.39 per cent on Thursday.
"Only selective trading is expected in August and the rally is expected to happen only in the middle of September when traders are back after the summer holidays," Yasin said.
According to Marwan Shuraab, fund manager and head of trading at Vision Investments, lack of new liquidity and summer holidays is holding back investors.
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