By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets will regain stability on Thursday if long-term institutional traders pump investments into some attractive blue chips, analysts told Mubasher.
Portfolio investors made purchases worth AED 35 million on Wednesday, while the sales of Gulf and local traders reached AED 12.47 million.
Foreign and Arab investors are trying to pressure the stocks to reduce their prices, according to Gulf market analyst Amer Al Mohannadi.
The second half of Wednesday’s session saw higher sales as investors were affected by lower-than-expected results posted for fiscal year 2016, Al Mohannadi added.
The markets will witness an accumulation of shares with a good financial performance, in line with upcoming shareholder meetings to approve annual financials, the analyst explained.
Speculators still control the UAE exchanges as they target to make use of low-priced stocks, according to capital market analyst Ahmed Ismail.
The markets are expected to rebound, but this does not mean that they will exit the downtrend, the analyst noted.
The UAE stocks are likely to continue their fluctuations in the coming period until oil prices stabilise above $55 as far as the end of March, Ismail concluded.
Translated by: Julian Nabil
