Dubai – Mubasher: The UAE stock markets are likely to witness further losses on Thursday due to the geopolitical scene in the region, analysts told Mubasher.
The Israeli army has said that the Iranian forces have fired rockets at its positions in the occupied Golan Heights early Thursday.
On Tuesday, Trump decided to walk away from the Iran nuclear deal, stressing he would reinstate the US economic sanctions imposed on Iran before the deal was signed in 2015.
Saudi Arabia and Bahrain have announced their endorsement of Trump’s decision of the US exit from the Iran nuclear deal.
The Abu Dhabi Securities Market (ADX) closed Wednesday’s trading session in green territory on the back of the rising banking sector, while the Dubai Financial Market (DFM) shed to its lowest in more than a year.
Investors would be cautious and concerned over trading in the local bourses due to the rising political tension in the region, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.
On the other hand, some operative stocks, which have not announced their financial results yet and already hit attractive levels, may see accumulations in spite of the overall choppy performance, Kassabieh indicated.
The UAE stock markets have shrugged off many positive factors, mainly improved oil prices as Trump decided to withdraw the US from the Iran nuclear deal, he noted.
He stressed that the UAE’s twin bourses are still attractive for investors due to higher investment earnings of stocks.
The unclear restructuring plans done by some listed-firms, as well as sell-offs on some of the blue-chip stocks and some investors’ tendency towards traditional investment instruments such as gold, have dragged the local bourses down, mainly the DFM, Kassabieh highlighted.
Translated by: Mai Ezz El-Din
