Analysts told Mubasher that they expect the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) to continue to incur ‘logical and expected’ profit-taking following the successive gains achieved in previous sessions.

Reda Muslim, Managing Partner at Truth Economic Consultancy, said that it is expected that the market will continue to see some fluctuations on the ‘narrow term’ in the coming period as traders continue profit-taking. Meanwhile, others believe that the levels are still encouraging towards buying.

The ADX shed its Tuesday morning gains, closing at a decline. Similarly, the DFM ended in the red on profit-taking on real estate stocks.

The DFM retreated on Tuesday on ‘logical and expected profit-taking’ following a three-session gain by as much as 25%, Muslim told Mubasher in a comment, adding that there might be some ‘forced selling’ to cover the finances of some investors, who received such financing to benefit from the rising market.

Meanwhile, General Manager at Al Ansary Financial Services Wael Abou Al Mohaysen told Mubasher that a state of caution continues to control the market. This atmosphere is accompanied by the end of the year and the absence of strong incentives to prompt investors’ appetite, he added.

Furthermore, Al Sherhan Centre for Securities General Manager Gamal Aggag told Mubasher that Tuesday’s declines were acceptable. However, sudden gains seen on the markets in one session then the resumption of the downward trend, such performance is not logical, he noted.

Translated by: Nada Adel Sobhi

Photo Credit: Arabianeye-Reuters