By: Mahmoud Gamal

Dubai – Mubasher: The UAE stock markets are expected to hold at their current levels on Thursday, amid increased investments by foreign and some institutional investors despite the US Fed's interest rate rise, analysts told Mubasher.

Although the UAE stock markets are about to see profit-taking, foreign investors are increasing their purchases, reflecting that the stocks stand at good price-earnings ratios, capital market analyst Salem Al Neweiri said.

The UAE bourses managed to hold on Wednesday after quick speculations on blue-chip and small-cap stocks, Al Neweiri said, adding that traders invested in various stocks led by DXB Entertainments, Abu Dhabi Commercial Bank (ADCB), Deyaar Development, and Dubai Investments.

Speculations still control trades as investors are anticipating the impact of the US interest rate hike on the real estate sector, Al Neweiri noted, adding that the sector is the most sensitive to the interest rate decision which will raise the cost of financing new projects.

Buying momentum seen since the beginning of this year is expected to continue as institutional and foreign portfolio investors try to make use of low-priced stocks, Al Neweiri explained.

Translated by: Julian Nabil