By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to see strong selling trend during Wednesday’s session, in line with investors' caution of geopolitical situation in the GCC, especially in Saudi Arabia, analysts told Mubasher.
On Tuesday, the Dubai Financial Market (DFM) decreased 1.8%, while the Abu Dhabi Securities Exchange (ADX) shed 0.38%, to reach 4,419.62 points.
Stocks are still seeing strong selling, in line with forecasting more tension in the political situation, NamaaZone CEO Iyad Aref told Mubasher.
The UAE bourses were impacted negatively during the last three sessions after what occurred in the neighboring stock markets, especially after Saudi Arabia started anti-corruption probe, Aref added.
During the current week, the DFMGI dropped down 3,534 points.
After the DFMGI dropped down 3,534 points, it may look for a support level which is between 3,477 and 3,446 points, and if it reached to it may exceed 3,740 points.
Regarding Emaar Properties’ stock, Aref said it is in line with expectations to reach support levels between AED 7.53 and AED 7.79 which are considered attractive prices for purchasing.
Regarding the ADX, Aref noted that it tumbled on Tuesday, aiming to reach 4,390 points, which may make up a new level of rebound and buying.
The anti-corruption crackdown which Saudi Arabia started it impacted negatively on investors, as the Saudi citizens are major investors in Dubai’s real estate sector, vice president of Investment Research at KAMCO Raed Diab stated.
The DFM is forecasted to recover during the coming sessions after some stocks fell, and awaiting more financial results of the companies, Diab added.
On the other hand, Diab indicated that the DFM may retreat again if any negative developments occurred in the region.
Technically, the DFMGI saw strong after failing to exceed the level of 3,682 points, Diab stated, concluding that the support level is near to 3465 points.
Translated by: Mohamed Hesham Azab
