By: Mahmoud Gamal
Dubai-Mubasher: Foreign portfolio investors tend to increase their positions in UAE stocks which reached attractive price levels, analysts told Mubasher.
Local investors are reluctant to trade amid anticipation of Morgan Stanley Capital International’s (MSCI) revision in the coming days, they added, noting that non-Arab traders invested in low-priced local stocks and made purchases worth AED 99 million on Sunday.
The strong solvency of some companies and their operational projects encourage foreign investors to build new positions in UAE stocks despite their fluctuations, according to analyst Talal Al-Ajmi.
Price-earnings ratios of most stocks are attractive compared to their peers in Gulf markets, pushing investors towards stock accumulations, Al-Ajmi noted.
The approach of Abu Dhabi market to the 4,230-point level will push its general index to break 4,250-4,280 points, technical analyst Hesham Al Harbi said.
Dubai market’s main index will target 3,500 points this week if new catalysts appear alongside an increase in liquidity, Al Harbi added.
Translated by: Julian Nabil
