By: Mahmoud Gamal

Mubasher: Long-term investors in GCC stock markets are currently abstaining from trading mainly due to the absence of incentives and the closeness of the Eid Al Adha holiday, analysts told Mubasher.

GCC bourses are expected to continue their fluctuating-to-declining performance on Monday, amid anticipation of oil price movements, after closing at stable last week.

The low prices of blue chips and some medium-sized stocks in the region is an opportunity for short-term investment, especially ahead of the anticipated rises after the Eid Al Adha holiday, analyst Amer Al-Muhannadi said.

The Eid Al Adha holiday is set to begin at the end of Wednesday, with all GCC markets closed on Thursday and Sunday.

Liquidity is expected to recover after the Eid holiday, Al-Muhannadi added, pointing out that portfolios are not likely to increase their purchases.

GCC stock markets’ small- and medium-sized stocks, especially in the UAE, Saudi Arabia, and Kuwait, have started to see some selective buying by institutions after achieving strong results in the first half of the year, he continued.

The analyst told Mubasher that GCC bourses are forecast to see fluctuations during the remaining sessions of the week, in line with expectations of indices falling below their current resistance levels, alongside the notable decline of liquidity levels.

Meanwhile, analyst Mohammed Saeed said that foreign investors were likely to increase their investments in GCC stock markets in the period following the Eid and summer holidays after global markets regain their stability.

Investors in the Dubai Financial Market (DFM) are forecast to keep an eye on the level of 3,550 points during the next period as surpassing this level will lead to more gains, he noted, indicating that the DFM is likely to target 3,750 points if it succeeds in passing 3,675 points.

He referred that the Abu Dhabi Securities Exchange (ADX) is seeing a sideways-to-rising performance, and is stable above the level of 4,500 points, which will offer up the opportunity to target 4,600 points on the medium term.

Liquidity levels are forecast to witness a gradual recovery in September by the end of holiday season, Eyad Al Bariqi, general manager of Al Ansari Financial Services, said, stressing that this week’s trading is expected to see a sideways performance, in line with investors being on the lookout for new incentives.

Translated by: Mai Ezz El-Din