By: Mahmoud Gamal
Dubai – Mubasher: The biggest challenge for the UAE bourses is to attract more liquidity this week to resume the upward trend and extend gains, analysts told Mubasher.
The Emirati stock markets shrugged off major firms’ annual results and their proposed dividend distributions last week, they indicated.
The Dubai Financial Market’s (DFM) general index closed last week down 1.32% at 3,286.54 points, while the Abu Dhabi Securities Market’s (ADX) main index inched up 0.14% to 4,579.60 points.
Investors’ decision
Thin liquidity is still directing investors’ decisions in the local markets, market analyst Ziad Al Qaimari said.
He also added that weak liquidity, which is reflected by the geopolitical risks in the region, is an obstacle that limits any new investments to the markets.
Liquidity ratios are tight due to the continuous negative interaction by some investors and traders for some bad financial results of some companies in late 2016 and the first quarter of 2017, he highlighted, adding that these negative results are still affecting many investors.
The UAE bourses still have the chance to change the bearish trend amid the announcement of local firms’ positive financial results, ignoring global stock markets, he continued.
Al Qaimari projected the DFMGI to move upwardly in the short term towards 3,340 points to pave the way to the level of 3,440 points.
Moreover, the ADX’s general index is forecast to hover above 4,714 points as it broke above 4,500 points, he noted.
Translated by: Mai Ezz El-Din
