Dubai: Looking back on the year gone by, allowing local companies to buy back shares when the stock prices were declining fast was not the ideal time to introduce such a measure, the head of Emirates Financial Services (EFS) said.
“Stretched valuations, bouts of profit taking, day and intra-week trading tendencies are all signals of the market getting heated up and that’s not the best time to introduce structural reforms or even measures like buyback of shares,” said Suresh Kumar, CEO of Emirates Financial Services.
“You are trying to buck the trend and that doesn’t work in a market that is supercharged. The right time to carry out reforms is when there is not much need or talk of them.”
Last year, as one of the recommendations, the IMF asked the UAE government to refrain from any intervention in order to prop up share prices.