By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are likely to extend their sideways performance on Tuesday amid on a continued lack of market-boosters, analysts told Mubasher.
The recent declines and mixed performances seen on the UAE’s twin bourses in previous sessions has impacted speculators and investors, prompting them to hold on to their money until a clear path is paved, news emerges, or new financial forecasts arise, according to analyst Muhannad Arekat.
The decline in the prices of a large number of stocks may be interpreted as an indicator for the drop in turnover as investors do not wish to sell their stocks at a loss, particularly after the drop in the price of many of their stocks, the analyst told Mubasher.
Commenting on the Dubai Financial Market’s (DFM) performance, Arekat highlighted that the bourse has found strong support at 3,450 points, but needs to hold above 3,600 points to confirm a positive outlook.
A break below 3,450 points indicates further pressure and declines, the analyst stressed.
Meanwhile, Eyad Al Bariqi, trading director of Al Ansari Financial Services, said that the UAE bourses’ jittery performance was likely to continue amid falling liquidity.
The bourses are likely to see a gradual rise as the period for disclosing financial results approaches, Al Bariqi told Mubasher, highlighting that investors have liquidity but are awaiting better catalysts and profit opportunities.
Al Bariqi expects better performance in the coming period on the back of third quarter results and new project announcements alongside gains in oil prices.
Translated by: Nada Adel Sobhi
