By: Mahmoud Gamal
Dubai – Mubasher: Oil prices and trade war between major global firms are likely to define the UAE stock markets’ trend on Wednesday and Thursday, analysts told Mubasher.
By the end of Tuesday’s trading session, the Dubai Financial Market’s (DFM) general index dipped 0.05%, and the Abu Dhabi General Index (ADI) fell 1.87%.
Idleness and inactiveness
Idleness and inactiveness are still dominating the DFM’s performance, in line with the absence of liquidity and the anticipation of global stock markets’ performance and global news, vice president of Investment Research at KAMCO Raed Diab said.
Latest news may lure investors to the local stock markets that in return boosts liquidity, Diab added.
The DFMGI is not capable of rising above the low levels it has recorded recently in the meantime, he highlighted, adding that the index may extend losses and move towards 3,125 points.
The DFMGI may test 3,250 points or 3,315 points if it breaks above 3,220 points, he indicated.
Cautious reaction
Diab further noted that the Abu Dhabi Securities Market (ADX) has seen a downward trend yesterday, pressured by First Abu Dhabi Bank’s (FAB) stock.
Investors have been slightly cautious, in line with the absence of market-boosting catalysts and the current global situation regarding US President Donald Trump’s latest comments over new tariffs on steel and aluminium, in addition to higher oil prices, he said.
The ADX could extend losses and move toward 4,440 points or 4,400 points if it tests support below 4,480 points, he highlighted.
The ADI should break resistance above 4,630 and 4,670 points to limit falling risks and resume the bullish trend again, Diab noted.
Translated by: Mai Ezz El-Din
