By: Mahmoud Gamal
Dubai – Mubasher: The UAE bourses are currently moving downward to significant levels amid oil prices seeing correction and the continuous of the unstable political situation in the MENA region.
The bourses were not able to settle above significant levels on Tuesday’s trading session and non-Arab foreign investors were mostly net sellers due to their concern over the current situation in the region, mainly in Yemen, CEO of Minecraft Consulting Fady Al-Ghattis told Mubasher.
Selling on yesterday’s session were limited, Al-Gahttis said, noting that lower oil prices had an impact on investors.
The markets may revive on internal and external factors, as most firms are financially strong and the UAE’s economy is good, he stressed.
Forecasts of stability
The UAE bourses are likely to witness a stable performance over the coming period, Al-Gahttis expected.
Foreign traders may maintain selling during December if the political situation remained the same, he pointed out.
Technical vision
Moreover, market analyst Gamal Abdel Hamid said that the geopolitical situation in the region drove liquidity lower below AED 300 million.
Traders in the UAE bourses were mostly net buyers in the last session, Abdel Hamid added, noting that the completion of ADNOC Distribution’s initial public offering will boost liquidity and purchasing power.
The Dubai Financial Market General Index (DFMGI) may break resistance above 3,400 points to reach 3,423 points if it settled above 3,385 points, he indicated.
The index may test 3,366 points if it failed to break above 3,400 and 3,386 points, he added.
The analyst recommended trading on some stocks, including Arabtec, Amlak, and Emaar to face any rebound.
Translated by: Mai Ezz El-Din
