By: Mahmoud Gamal
Dubai – Mubasher: The UAE stocks markets’ stability are backed by selective foreign purchases of blue-chip and defensive stocks on Tuesday, amid anxiety over the significant decline of other gulf exchanges, according to analysts.
The UAE stocks are recovery, in line with ongoing accumulations by some foreign portfolio investors, capital market analyst Hassan Al-Zawi told Mubasher.
The UAE markets’ sentiment was negatively affected by the Saudi Stock Exchange (Tadawul) which witnessed higher losses following the announcement of plans for reforms to the telecommunications industry, the analyst noted.
Decline of gulf stocks markets does not reflect a panic selling due to low trading volume, but it shows that major investors implement a hold strategy with their stocks, Al-Zawi added.
The UAE bourses still suffer from the control of speculations amid the absence of real investments, justifying the low liquidity witnessed recently, the analyst explained.
The markets saw an inflow of new liquidity, indicating that some portfolio investors want to increase their positions in the UAE local stocks, according to capital market analyst Mohamed Al-Azmi.
Translated by: Julian Nabil
