By: Mahmoud Gamal

Dubai – Mubasher: UAE stocks have continued to see strong speculations and are lacking in real incentives, particularly recently-announced dividends, analysts told Mubasher, noting that such a lack is negatively impacting the two markets.

On Tuesday, the Dubai Financial Market (DFM) closed in the red, weighed by selling pressures on its blue chips, while the Abu Dhabi Securities Exchange (ADX) edged down 0.04%.

Market analyst Ibrahim Al Filkawy commented that the absence of catalysts and the general calm of the present period, especially after all companies have disclosed their annual results, will be subject to speculation.

Most financial disclosures were disappointing to investors, the analyst told Mubasher.

Al Filkawy further noted the state of uncertainty among portfolios and investment funds in the GCC, many of which have shifted their focus from trading in stocks to digital currencies.

This shift is clearly seen in the low liquidity levels in the bourses, he added.

The UAE's benchmark indices are moving towards important turning points, Al Filkawy said, indicating that the DFM's general index would test 3,250 points in the coming sessions, while the ADX continues to trade between 4,450 and 4,500 points.

Meanwhile, Gamal Ajaj from Al Sharhan Stock Centre, stressed that the situation in the UAE's twin bourses was not a cause for fear or worry, indicating that current stock prices would likely offer a good return on investment (ROI) in terms of the announced dividends.

He did say, however, that the psychological state in the bourses will only be reversed once investment portfolios return to the market, resuming their position as the main market drivers.

It is difficult to predict what will happen in markets in the present time as they continue to suffer from falling turnover and indices, Ajaj said, noting that these drops were unjustified.

Translated by: Nada Adel Sobhi