By: Mahmoud Gamal
Dubai-Mubasher: The UAE stock markets are likely to reverse their downtrend on Tuesday, backed by rebounding oil prices and U.S. equities, capital market analyst Gamal Abdel Hamid told Mubasher.
Brent crude rose 0.8% or $ 0.34 to $41.54 per barrel on Monday, while the U.S. crude added 1.2% or $0.47 to $39.91 per barrel.
Abu Dhabi market’s main index is expected to rise and close near 4,600 points on Tuesday, Abdel Hamid added.
Dubai market was weighed down on Monday by Arabtec Holding as news that the company is seeking to reduce its capital sparked fears over the stock, he noted.
However, portfolio investors developed an appetite for heavyweight Emaar Properties, trimming the market’s losses.
Dubai market’s main gauge attempts to close above 3,421 points, according to Ahmad Al-Amoudi, technical analyst at Trades Chamber.
Low liquidity showed that investors do not have the desire to sell their stocks at the current price levels, Al-Amoudi explained.
If the DFMGI moves below 3,350 points, it will head to 3,283 points then to other lower levels, thus pushing investors to sell their stocks to stop losses, he said.
