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UAE bourses to see temporary recovery this week – Analysts

UAE bourses to see temporary recovery this week – Analysts
UAE bourses have the ability to rise amid positive liquidity forecasts after Emaar Development’s IPO

By: Mahmoud Gamal

Dubai – Mubasher: UAE stock markets are forecast to resume their rising trend this week and see a “temporary” recovery amid expectations that the geopolitical atmosphere will remain calm while liquidity will return to the market after the initial public offering (IPO) of Emaar Development ends, analysts told Mubasher.

Last week, the Dubai Financial Market (DFM) closed at a slight rise, whereas the Abu Dhabi Securities Exchange (ADX) ended the week down.

Technically, UAE bourses have the ability to rise amid positive liquidity forecasts following the conclusion of Emaar Development’s IPO, commented Iyad Aref, CEO at Namaa Zone.

The first general meeting for Emaat Development is slated for Tuesday, while the company’s shares will be listed on the DFM by the end of the week.

As for the DFM’s movement, Aref noted that the market was likely to reach 3,540 to 3,500 points, after closing at 3,460 points last week, indicating that market’s general trend is a declining one, which may see a fall to 3,330 points.

Reaching 3,330 points on the short-term may be a good point for investors to reposition themselves and resume buying, Aref added.

Meanwhile, technical analyst at the African Economic Council Mona Mostafa commented that the DFM’s performance last week was a sideways one after it had fallen below major support levels to rebound at 3,397 points in an attempt at a small recovery mingled with minor selling.

The DFM’s turnover remains low, making the rebound a weak and temporary one, Mostafa added, advising caution.

The first sessions of the week are likely to be calm, and may see the DFM move between 3,427 and 3,414 points, she added, noting that resistance continues to be between 3,500 and 3,544 points

As for the Abu Dhabi market, Mostafa indicated the major support will be seen at 4,356 points, where the general index closed last week, indicating that the ADX may see a decline at that level.

However, should buying commence at this level, it will offset the selling seen on leading stocks amid the continued decline in turnover, the analyst added.

Mostafa highlighted that investment portfolios were awaiting the upcoming IPOs set to take place on the ADX to pump their money.

 

Translated by: Nada Adel Sobhi