Dubai: Even as retail investors sell off their Arabtec holdings, foreign funds are not taking the exit route. They still hold more than 11 per cent in the company.
But some stock brokers say not too much should be read into that exposure. They say that some of the existing funds may have come to Arabtec after the UAE was upgraded to an emerging markets status. As such, the foreign funds would only represent a “passive” allocation in some of the UAE’s highly liquid stocks.
Brokers add that it would be interesting to see how these funds take up positions in the coming days. Will they use the current soft share prices to raise their stakes?
It will be interesting to see if the current softness on DFM will put off the upcoming IPO launch plans, including a mega offer from a retail major.
