By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to maintain the bullish trend on Tuesday’s trading session amid selective buying on blue chips, mainly Emaar Properties, analysts told Mubasher.
The Dubai Financial Market’s (DFM) general index closed Monday’s trading session up 0.18%, while the Abu Dhabi Securities Market (ADX) inched up 0.07%.
Creating positions
The Emirati stocks may rebound technically at their current levels, and it is an opportunity for creating positions, not selling, CEO of NamaaZone Iyad Aref said.
The DFMGI could break above 3,700 points, but this will take time, especially after the recent losing-streak, Aref stressed.
Despite the DFM has slightly risen yesterday, liquidity ratios have notably retreated as investors were concerned over buying on stocks and selling pressures have dominated the DFM, he indicated.
The period of announcing firms’ annual financial results has ended, which will negatively impact the local stock markets, particularly the DFM, he emphasised.
Aref recommended investors to create positions and start speculations, as well as buying on stocks with good performance.
Lack of liquidity
Moreover, capital market analyst Basel Abu Teima said that the Emirati bourses are lacking the required liquidity as it fell below AED 600 million.
The current liquidity ratios highlight the absence of investors, including foreign portfolios, and their distrust in entering the local stock markets in the meantime, Abu Teima added.
The prices of stocks have been completely affecting traders of the UAE bourses, which are deemed one of the current negative factors, he continued.
The local stock markets could not keep up with the global stock markets or oil prices, which highlights investors’ disinterest in taking risks, he noted.
Short-selling has adversely impacted the Emirati main indices and stocks because this strategy has been applied in a time that did not consist with the low levels and prices of stocks, he pointed out.
The analyst projected the current scene of the UAE stock markets to last until the end of the first quarter of 2018 to change by next April.
Translated by: Mai Ezz El-Din
