By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are expected to continue their rise this week on the back of higher liquidity as investors look to increase their positions in several stocks, which have fallen to attractive price levels, analysts told Mubasher.
On Thursday, the general index of the Abu Dhabi Securities Exchange (ADX) gained 1.16%, while the Dubai Financial Market (DFM) grew 0.37%.
Several stocks have witnessed selective buying by investors after their prices retreated to attractive levels, market analyst Mohamed Al-Azmy commented.
Stocks in the insurance and transport sectors continue to attract a large number of investors, the analyst said, noting that these sectors suffered declines in some of last week’s sessions, pressured by intense selling.
Analyst Ahmed Al-Ammady concurred with Al-Azmy, and added that investors were selectively purchasing stocks in the hopes of seizing some investment opportunities.
In terms of weekly performance, the DFM grew 0.74%, whereas the ADX incurred its fourth straight decline.
On the other hand, Jamal Ajaj, director of Al Sharhan Shares Centre in Abu Dhabi, said that he viewed the UAE bourses’ traded volumes as “below expectations”, indicating that the reason behind this is the current difficulty in deciding whether to buy or sell.
Blue chips continue to be absent from the market, while other stocks are suffering selling pressures by speculators looking to gather profits, Ajaj added. He noted that the DFM’s Emaar Properties’ stock suffered similar pressures last week.
As for turnover, Ajaj said that it too has dropped significantly amid the lack of market-boosting catalysts.
Translated by: Nada Adel Sobhi
