By: Mahmoud Gamal
Dubai - Mubasher: It is expected that UAE stock markets will extend their positive performance on Thursday as investors increase their positions in heavy-weight and large stocks, whose prices have recently fallen significantly, analysts told Mubasher.
Portfolios looking to increase their positions in local stocks signals a possible extension of positive performance for UAE markets on Thursday, market analyst Nawwaf Al-Ajami told Mubasher.
Having fallen below their fair value of after more than three straight sessions of declines, leading stocks reached attractive prices, prompting investor interest, he noted.
This has caused the UAE bourses to rise once more, Al-Ajami added.
The rebounds seen in the two UAE markets indicate that traders see strong investment opportunities in these markets, the analyst added in his comment.
On another note, analyst Doaa Farouk noted that the announcement of new subscriptions and IPOs was likely to prompt investors to draw some liquidity from local stocks.
On Wednesday, Orient UNB Takaful, a joint venture between Union National Bank (UNB) and Talal Abu-Ghazaleh & Co. International, said it will launch initial public offering (IPO) between 29 November and 15 December.
The new company will list its shares on the Dubai Financial Market (DFM) within one month of the announcement date of its incorporation.
The DFM is set to see strong resistance at 3,360 points on Thursday, UAE market analyst Hammad Saeed said, adding that should the DFMGI close above that level, it will move onto second resistance at 3,400 points.
As for the Abu Dhabi Securities Exchange (ADX), passing 4,250 points will push the index towards 4,300 and 4,350 in the coming sessions, he added.
Translated by: Nada Adel Sobhi
