Dubai – Mubasher: The Emirati stocks are still anticipating fresh market-moving catalysts to overcome the recent volatile trend amid thin liquidity, analysts told Mubasher.
The Dubai Financial Market (DFM) closed Sunday’s trading session up 0.97% at 3,187.92 points, and the Abu Dhabi Securities Market (ADX) edged up 0.14%, closing the first session of the week at 4,533.52 points.
Purchasing positions
Traders at the UAE stock markets are waiting for new positive catalysts to reopen purchasing positions that push the indices upwardly again, technical analyst at the African Economic Council Mona Mostafa said.
The main indices of the local bourses have closed last week in red territory to continue the bearish trend in the short term, Mostafa highlighted.
The ADX’s general index has closed last week at 4,527 points, which may drag it down unless it witnesses purchasing power that limits selling pressures on blue chips amid weak liquidity ratios, she indicated.
Investors in the UAE bourses are expecting new catalysts that boost liquidity to encourage them to open purchasing positions as the ADX is seeing a sideways trend near support levels, she added.
The ADX may fell between 4,478 and 4,469 points if it breaks through 4,527 points, she pointed out.
Meanwhile, the DFM has also seen a sideways trend last week after testing 3,157 points, which may drag it down, she explained.
Liquidity ratios in the DFM are slightly low, Mostafa stressed, warning sellers to be fully aware of the stock market before starting accumulations.
The DFM’s general index is expected to see a negative performance that pushes it to retest 3,094 and 2,931 points, she forecast.
The DFMGI is likely to face a wave of profit-taking, the analyst said, noting that the index has resistance at 3,238 and 3,308 points.
Translated by: Mai Ezz El-Din
