By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are forecast to continue their mixed performance on Monday amid lacking catalysts and unclear projections of companies’ financial results for the third quarter of 2017, which has prompted foreign investors to continue selling, analysts told Mubasher.
On Sunday, the Dubai Financial Market (DFM) closed 0.52% lower to 3,545.40 points, whereas the Abu Dhabi Securities Exchange (ADX) closed in the green, adding 0.30% to 4,410.51 points.
MenaCorp financial analyst Issam Kassabieh commented that UAE bourses were moving in an unclear path as portfolios exchange positions in operational stocks.
Operational stocks are companies like Dubai Islamic Bank (DIB), Emirates NBD, Air Arabia, and DAMAC, whose primary focus is investing on their operations.
Companies undergoing restructures and those that have reached agreements with their creditors, like Gulf General Investment Co. (GGICO), have begun seeing some new entries and buying, the analyst told Mubasher.
Meanwhile, other stocks are forecast to see some positive activity this week including Drake and Scull International (DSI), where Tabarak Investment has become a strategic shareholder, Kassabieh revealed.
As for Emaar Properties’ stock, the analyst told Mubasher that the Dubai-based developer’s stock was set to perform positively in the coming period ahead of its Q3-17 financial disclosure.
On the other hand, Hesham Hassan, head of technical analysis at Acumen Asset Managment, said that from a technical perspective, the DFM’s general index has failed to surpass 3,675 points, a level that was seen as an important point in the index’s upward path.
Falling below 3,575 points confirms that the DFMGI’s current trend is a declining one, the analyst told Mubasher, noting that the DFMGI was heading towards 3,400 points.
As for the ADX, Hassan indicated that the index will continue moving downwards so long as it continues trading below 4,500 points.
Should the ADX maintain its position above 4,355 points, an important level, in the current period, that should be enough to prevent it from falling towards 4,180 points.
Translated by: Nada Adel Sobhi
