By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to hold at their current levels on Wednesday, amid portfolio investors’ tendency to increase their investments in blue chips in line with the announcement of new projects at Cityscape Global 2017, analysts told Mubasher
The UAE stock markets managed to hold on Tuesday despite the slight decline of the Dubai Financial Market (DFM), financial analyst Hossam Al Husseini said.
The markets were backed by trades of foreign, Arab and gulf investors who increased their positions in blue-chip companies, Al Husseini noted.
Investments pumped by traders in blue chips reflect a positive outlook for the UAE markets this month, the analyst said.
The projects, which are being announced by blue-chip companies at Cityscape Global 2017, are positively encouraging traders to speculate on their stocks, according to Issam Kassabieh, a financial analyst at Menacorp Financial Services.
The rise of banks stocks was backed by the news that FAB participated in providing a loan.
FAB, HSBC, Intesa Sanpaolo, Santander and Standard Chartered have provided the loan, which has a 10-year tenor, for Dubai to extend the city’s metro rail system, sources familiar with the matter told Reuters.
The DFM is not expected to decline below its support at 3,560 points, yet yts rise above 3,680 points will push it further to 3,740 points, according to Raed Diab, vice president at KAMCO Investment Co.
If the Abu Dhabi Securities Exchange (ADX) rises above its resistance at 4,475 points, it will move higher to 4,510 points, Diab added.
