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Government intervention sought in market turmoil
UAE market players are seeking government intervention after losses of Dh100 billion suffered by the UAE markets in the past three days, seeking an end to the markets' downward spiral.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:29 October 9, 2008
Abu Dhabi: UAE market players are seeking government intervention after losses of Dh100 billion suffered by the UAE markets in the past three days, seeking an end to the markets' downward spiral.
Many of the listed shares in Abu Dhabi and Dubai are now trading below their book values, which indicates that the panic selling is unjustified.
"This means that these companies will generate a better value if liquidated, yet most investors are reluctant to buy in these gloomy conditions," said Mohammad Ali Yasin, Managing Director of Shuaa Securities.
"Government intervention is no more a luxury or an option, especially since governments worldwide are the parties bailing out the financial sector," he declared, explaining that the form of intervention is not important as long as confidence is restored.
Foreign investors are now liquidating their positions in all emerging markets to cope with the crisis.
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