By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are likely to maintain seeing a volatile trend on Monday amid investors’ concern over global markets which have suffered sharp losses last week, analysts told Mubasher.
The Abu Dhabi Securities Market (ADX) closed Sunday’s trading session up at 4,615.27 points, while the Dubai Financial Market (DFM) ended the session down 1.09% to 3,116.15 points.
The US and European stock markets slumped by the end of last Friday’s trading session, pressured by investors’ fears of a trade war between the US and China.
Decisions
The DFM is expected to continue tumbling as a result of random investment decisions, which weighed the DFMGI down below 3,150 points, CEO of NamaaZone Research Iyad Aref told Mubasher.
Investors are shrugging off the strategic alliance between Emaar Properties and Aldar Properties that top officials praised last week, claiming it would boost investors’ confidence in the UAE bourses, Aref indicated.
“This is the right time to set up new sovereign funds to bolster market makers, in line with current prices hitting attractive levels,” he commented.
“The local stock markets do not suffer from thin liquidity, but they experience a lack of confidence. Everyone should participate in regaining this confidence,” he continued.
Many traders are concerned over the geopolitical scene in the region and think this may push the UAE stock markets towards further declines, he said.
Aref further noted that investors in the region are also shrugging off the Saudi Stock Exchange (Tadawul), which is hovering around 8,000 points, climbing more than 20% since the beginning of 2018.
Global Stocks
For his part, capital market analyst Basel Abu Teima said that the DFM has been remarkably affected by the global stock markets plunge due to trade war fears between the US and China.
Moreover, the dual-listing of Naeem Holding on the DFM yesterday has occurred in an unsuitable time due to the downward trend the stock market is witnessing since the beginning of this year, Abu Teima added.
Any initial public offering (IPO) should take place when stocks recover and resume the bull run again, he remarked.
Translated by: Mai Ezz El-Din
