By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are seeking to regain investors’ confidence in order to resume the bull run over the coming trading sessions, analysts told Mubasher.
By the end of Wednesday’s trading session, the Dubai Financial Markets slid 22.95 points, or 0.72%, to 3,181.96 points, while the Abu Dhabi Securities Market dipped 3.91 points, or 0.09%, to 4,519.58 points.
The biggest loss
The DFM has started trades this month at 3,209 points, after seeing a loss of 4.43% last February, which is the biggest loss since November 2017, CEO of NamaaZone Iyad Aref said.
Firms’ financial results for 2017 were not significantly high as more than 56 companies have announced turning to losses, while 67 firms have turned profitable, Aref indicated.
These weak financial statements, in addition to pressures to ease participation in initial public offerings (IPOs), have impacted investors’ decisions, he said.
The Emirati bourses do not lack liquidity, but they notably suffer from investors’ doubt as a result of many factors, he stressed.
He further noted that the local stock markets are not suffering from a thin liquidity crisis as the UAE’s central bank posted in a recent report that total deposits volume rose to AED 1,627 billion last December from AED 1,421 billion in December 2014.
Retail investors are dominating local markets, compared to the humble institutional investment, he added, pointing out that it is one of the obstacles.
Despite the overall pessimism vision, the Emirati stock markets could break above 4,000 points to reach 4,750 points during March, Aref remarked.
Selling pressures
For his part, market analyst Jamal Abdul Hamid said that selling pressured are likely to continues impacting all the sectors, particularly the real estate and banks sectors, which drag indices down over the previous sessions.
The DFMGI may fell between 3,150 and 3,125 points, he added, noting that the index has seen rebounds and is likely to break above 3,220 and 3,238 points.
Translated by: Mai Ezz El-Din
