Financial market experts and analysts have identified 15 factors behind the increased liquidity in the UAE stock markets during the current Ramadan.
Experts and analysts reported that among the factors behind the increase in liquidity during Ramadan were the announcement of strong quarterly results by companies, generous dividend distributions, increased confidence of foreign investors in local markets, a rise in trading appetite, in addition to the improvement in oil and global stock markets and the rise in price-to-earnings ratios for the UAE markets, which enhanced the attractiveness of local stocks.
The experts added that among the main factors that boosted confidence in the local financial markets were the strength and resilience of the national economy in confronting the pandemic, the gradual easing of COVID-19 restrictions, the acceleration of vaccination, and the approaching Dubai Expo.
According to Al Bayan Economic newspaper, Tariq Qaqish, CEO of Salt Financial Consulting, said that one of the main factors behind the increased liquidity momentum in local financial markets during Ramadan is optimism regarding the first quarter results, which is a catalyst for increased investor interest in the markets, especially after the strong results of some banks, most notably Emirates NBD and First Abu Dhabi Bank, in addition to the dividend distribution entitlements, as well as the recent changes in business laws that supported investor sentiment.