Liquidity weighs on Abu Dhabi, Dubai flat

Abu Dhabi's index extends losses from Tuesday as the market continues a pull-back to its 200-day average and investors close positions ahead of the end of year. Abu Dhabi National Energy Co (Taqa) slips 3.5 per cent and First Gulf Bank drops 0.8 per cent amid low volumes which are exaggerating moves.

"Abu Dhabi is still considerably far from its 200-day average...which is currently at 2,680 points. We might see a pull-back in coming days," says Saad Al-Chalabi, technical analyst at Al Ramz Securities. "We'll see low volumes because of low liquidity at the end of the year, especially in the UAE, and any slight amount of selling is having a more drastic effect on the market." News about government support for Aldar Properties is expected to surface this week, and Chalabi says the stock will be boosted by that. Aldar falls 0.9 per cent, and the benchmark slips 0.2 per cent to 2,721 points. Dubai's index is almost flat at 1,642 points.