By: Mahmoud Gamal

Abu Dhabi – Mubasher: The UAE stock markets are still suffering from the state of caution and hesitation that controls traders, in line with the blurred future of some troubled companies, topped by Arabtec Holding and Drake and Scull International (DSI).

Liquidity is still weak due to the markets’ unclear vision, technical analyst Ahmed Al Emadi told Mubasher.

The past sessions witnessed random and illogical speculation on Arabtec’s rights issue, the analyst noted.

The price of Arabtec’s shares in the market is lower than that offered in the subscription, Al Emadi added.

The company has launched its AED 1.5 billion rights issue for subscription from 15 to 28 May as part of a capital restructure programme.

Traders are waiting for new catalysts this week to pump investments, in line with the near end of Arabtec’s subscription period that is pressuring the markets, he noted.

The markets are expected to see calm trades in line with the approach of the holy month of Ramadan and summer vacation, technical analyst Mohamed Mahdi said.

The main index of Dubai’s bourse will be able to reach 3,420 and 3,450 points if it manages to move above 3,380 points, he noted.

Traders should not increase their positions if the index falls below 3,300 points, Al Mahdi added.

Translated by: Julian Nabil