UAE markets may be headed for consolidation

UAE markets may be headed for consolidation

Expert says oil prices may remain under pressure for some time

Stuart Cole, chief macroeconomist at Equiti Capital. — Supplied photo

Published: Sun 4 Jun 2023, 4:16 PM

Stock markets in the UAE should prepare for a period of consolidation rather than expansion, according to a leading expert.

Stuart Cole, chief macroeconomist at Equiti Capital, says that with recessionary fears growing, there will be less interest on the part of corporates to engage in money raising operations such as IPOs until the global environment turns move positive again. “The start of the year has been bright for the UAE stock market, but going forward the outlook looks more challenging, not just for the UAE, but for stock markets globally,” Stuart told Khaleej Times.

Cole has over 25 years of experience in banking and FX. His former roles include working at the Bank of England in the City of London as an economist in the International Divisions.

The output cut by Opec+ has not really had the effect that the organisation was hoping to engineer, that is, a material rise in the global price of oil, Cole said. “The initial bounce in prices after the announcement was made has proved to be short-lived, a reflection of both