By: Thabet Shehata

UAE – Mubasher: The recent declines in UAE stock markets has brought down prices to significantly low levels, thus making way for long-term investments, analysts told Mubasher.

The Dubai Financial Market (DFM) quickly resumed its negative performance and ended Wednesday in the red, weighed down by the real estate sector’s Arabtec and Emaar Properties, alongside the investment and telecom sectors.

The Abu Dhabi Securities Exchange (ADX) ended at a marginal loss after returning to the red in the opening trades, pressured by the real estate sector and shrugging off gains by the energy, telecom and banking sectors.

Moussa Haddad, investment fund manager in the National Bank of Abu Dhabi’s (NBAD) asset management group, noted that the market decline at present represents investment opportunities for large portfolio and fund investors and others to rebuild financial positions at the new low price levels.

Long-term investors should not be concerned or fearful as opposed to speculators, Haddad told Mubasher, adding that these new prices offer excellent opportunities to collect stocks for top companies.

He said he expects a strong surge in stocks similar to the recent decline.

Meanwhile, Sameh Gharib, head of technical analysis at Roots Investments, noted that UAE markets have become significantly tied to their global counterparts, especially in the absence of strong internal positive catalysts.

He added that the first level of resistance for the DFM is expected at 3,700 points, whereas for the ADX, resistance is to be seen at the level of 4,500 points.

Translated by: Nada Adel Sobhi