By: Mahmoud Gamal
Dubai – Mubasher: The initiatives launched recently by the UAE government to encourage investments in the GCC country, as well as foreign traders’ tendency to buying stocks, will push the UAE bourses towards stability this week, analysts told Mubasher.
By the end of last week, the Dubai Financial Market (DFM) dipped 0.4% to 3,082.09 points, while the Abu Dhabi Securities Market (ADX) rose 1.15% to 4,706.56 points.
The UAE stock markets have seen a mixed performance last week as they started it with rebounds amid investors’ hopes of a stable trend backed by blue-chip stocks, in line with a wave of profit-taking and selling pressures, technical analyst at the African Economic Council Mona Mostafa said.
Foreign buying may maintain the stability of the local markets as stocks have hit attractive levels, Mostafa highlighted.
Many Emirati firms have recently announced positive quarterly financial results and dividends, which would positively impact the UAE’s twin bourses, she added.
The anticipated growth in the UAE economy this year could reinforce investment opportunities for several sectors, which would consequently lure foreign investments to Emirati stocks, she remarked.
The main indices of the local stock markets have seen a mixed performance last week, which may continue to the next week, she noted, adding that buying on stocks is expected to resume.
Investors are likely to resume buying stocks with significant operational performance and dividends and positive financial results, which may boost liquidity in the local bourses, Mostafa said.
Technical vision
Mostafa further noted that the DFMGI has support at 3,054 and 2,976 points and has resistance at 3,148 points.
Meanwhile, the ADX’s general index is forecast to test resistance at 4,720 points before facing a wave of profit-taking that makes the index retest support at 4,650 and 4,590 points, she added, pointing out that it may break above resistance to reach 4,833 points.
Translated by: Mai Ezz El-Din
