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UAE bourses forecast to extend gains this week - Analysts

UAE bourses forecast to extend gains this week - Analysts
The DFM may regain the level of 3,338 points once more

By: Mahmoud Gamal

Dubai – Mubasher: UAE bourses are expected to extend their recovery and gains this week as investors consider selective buying of stocks whose prices have reached attractive prices, analysts told Mubasher on Sunday.

By the end of last week’s trades, the Dubai Financial Market (DFM) closed higher by 1.26%, while the Abu Dhabi Securities Exchange (ADX) ended in the green on the back of energy and telecom stocks.

 

Continued rebound

The twin UAE stock markets are likely to have a good start this week, particularly the DFM whose support will be seen at 3,153 and 3,130 points, commented technical analyst at the African Economic Council Mona Mostafa.

Last week, the DFM closed higher towards 3,197 points after a sharp rebound in the final sessions of the week, after a minor collection movement by investors, which may prompt the DFM to test resistance at 3,210 and 3,239 points, Mostafa noted.

By surpassing these levels, the DFM may even regain 3,338 points once more, she added.

As for the ADX, the analyst noted that its general index succeeded in holding well last week above support levels, which were able to separate between the index and a possible drop and which allowed the index to rebound and close at 4,542 points.

The ADX is nearing resistance at 4,565 and 4,587 points, Mostafa said, adding that reaching these levels may push the ADX’s general index in sideways channel, before a trend is revealed.

ADX will continue to see support at 4,491 and 4,400 points, the analyst concluded.

Recovery

Meanwhile, analyst Ines Mguidich noted that liquidity has not seen any major increase recently and foreigners and institutions were sellers.

Should the DFM succeed in maintaining a position above 3,160 points, we will likely see a continued rise towards 3,200 then 3,250 points, Mguidich stated.

She added that investors were likely to start buying blue chips with projected higher yields, which in turn will bolster turnover in the coming sessions.

 

Translated by: Nada Adel Sobhi