By: Mahmoud Gamal
Dubai – Mubasher: The UAE stocks need a long-term institutional entrance to benefit from the prices reached in some mega companies, so that the markets would not fall on Thursday, analysts told Mubasher.
The general index of the Abu Dhabi Securities Exchange (ADX) fell 0.58% on Wednesday, while the Dubai Financial Market (DFM) decreased 0.69%.
The risk rate in the market became bigger with the focus on speculations instead of investment, technical analyst Ahmed Ismail told Mubasher.
He added that the UAE markets need the return of the institutional investment to abolish the control of speculations over the markets.
Foreign investors continued to invest in some stocks, despite the mixed performance resulted from the instability of global markets, which is a good sign for traders, technical analyst Salem Al Nuwairy said.
The analyst added that liquidity in the markets will still be directed to the stocks listed in the DFM and Boursa Kuwait and small-sized shares, which recorded standard hikes since the beginning of the year.
The markets would extend its fluctuating approach in the coming period, probably until oil prices stabilise over the safe levels at $55, especially after news regarding the renewal of OPEC's deal amid concerns around the US output, Al Nuwairy added.
Al Nuwairy noted that the return of profit-gaining in global markets, with the anticipation of US President Donald Trump to apply his policies, would have a negative impact on the transactions of foreign portfolios in UAE markets this week.
