By: Mahmoud Gamal
Abu Dhabi – Mubasher: The UAE stock markets are still weighed by investors’ anxiety following the announcement of postponing stimulus plans for the telecom sector, in addition to the negative impact of Arabtec Holding’s disappointing annual results, analysts told Mubasher.
The UAE Cabinet postponed its decision related to procedures required to improve the competitive climate in the telecom sector.
The hesitation in most Gulf markets still has a negative impact on investors’ sentiment and will be reflected on the UAE bourses’ liquidity as a result, capital market analyst Mohamed Al Azmi told Mubasher.
Continuous decline in the UAE markets’ liquidity will push traders to profit-taking, Al Azmi explained.
The recent decline in UAE trading activity reflects the absence of investment in local stocks, according to Fady Al Ghattis, CEO of Think Financial Services.
Investors still fear blue chip stocks, especially in the Dubai Financial Market (DFM), which were negatively affected by the higher annual losses of Arabtec and its unclear plan for recapitalisation, Al Ghattis added.
The DFMGI is likely to reach its support level at 3,500 points, the analyst noted.
Translated by: Julian Nabil
