By: Mahmoud Gamal
Dubai – Mubasher: The selective purchases of portfolios focusing on medium and defensive stocks are expected to endorse the stability of the UAE stock markets on Tuesday in order to rise in line with the improvement of liquidity levels and investors’ appetite, following the decision taken on Monday to cut the UAE’s diplomatic relations with Qatar, according to capital market analysts.
The UAE stock markets on Tuesday are expected to continue their bullish-to-sideways performance in line with the accumulation of medium stocks, capital market analyst Hassan Al Zawy said.
On Monday, the UAE bourses showed good performances despite breaking ties with Qatar; the Dubai Financial Market (DFM) has succeeded in shrinking a major part of its losses by the end of the trading session, while purchasing transactions on small caps have pushed the Abu Dhabi Securities Exchange (ADX) to close the session in green, Al Zawy noted.
Investors at the UAE markets focused on penny stocks in line with the good news over intentions to execute further acquisition deals, capital market analyst Muhammad Al-Shimery said, noting that these stocks are expected to see profit-taking in the coming sessions, led by speculators to take good advantage of the high prices of stocks which announced positive results in the first quarter of 2017.
Meanwhile, capital market analyst Tareq Ghanem expected the UAE markets to witness a state of anticipation in the coming sessions, awaiting the consequences of cutting diplomatic relations with Qatar.
