By: Mahmoud Gamal
Dubai – Mubasher: Analysts expected that local investors and speculators would continue the selective purchasing of valuable small and medium stocks in UAE markets on Tuesday, despite the comprehensive sales by leading stocks.
Dubai Financial Market (DFM) fell 1.2% on Monday, while Abu Dhabi Exchange (ADX) decreased by 0.9%.
The vague stance of Arabtec regarding the restructuring along with its accumulated losses negatively affected the trades yesterday, although the main effective factors in the markets were doing well, technical analyst Mohamed Al Azmy told Mubasher.
He added that despite the strong declines on Monday, some investors' trades focused on small shares, such as Emirates Islamic Bank, dxb Entertainments, Rak Ceramic, and SHUAA Capital.
The analyst expected that the markets would get over the shock of the strong declines and try to surpass important resistance levels in the coming sessions, with the start of the companies' dividends distributions.
Moreover, technical analyst Mohamed Al Shemary said that lately the UAE markets saw rushing towards speculations targeting a number of small stocks.
He added that the speculating shares were able to preserve their price levels, despite the profit gains that controlled some of the leading stocks, led by Arabtec.
Al Shemary noted that the company has to provide the market with information to reassure it concerning the restructuring it would implement, in order to avoid bankruptcy.
Technical analyst Dayem Sultan stated that the market became an individuals and not an institutional market, amid speculations and limited supply and demand, which limited it to local and foreign investment portfolios.
