By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to see fluctuating-to-rising performance during Wednesday’s trading activities after some stocks have stood at attractive price levels, technical analysts told Mubasher
They added that investors are awaiting new market-boosting incentives, particularly the approaching second quarter results.
By the end of Tuesday’s session, the Dubai Financial Market (DFM) went up 0.33% to 2,838.53 points, while the Abu Dhabi Securities Exchange’s (ADX) index rose 0.16% to 4,569.85 points.
The crisis ends
The Emirati equity markets started recovering from the ailing private equity firm Abraaj Group’s crisis as of July, CEO of Minecraft Consulting Fady Al-Ghattis said, expecting the bourses to extend the upward trend.
In June, the twin UAE stock markets saw a major sell-off by non-Arab investors and banks due to The Abraaj Group’s crisis, he added.
UAE-based Abraaj filed for liquidation earlier last month, as a response to a group of liquidation petitions after the company was hit by money misuse allegations.
In the vein, Al-Ghattis noted that a group of foreign investors was still affected by the drop seen by Drake and Scull International’s (DSI) stock, Al Qusais noted.
In spite of investor fears, which are almost faded, some traders have maintained their financial positions without any random sell-off, closely monitoring the markets’ conditions over the coming period and their ability to attract to institutional investment, Minecraft Consulting’s CEO said.
From a technical perspective, the twin UAE stock markets, especially the DFM, have reached supportive levels enabling them to extend yesterday’s rebound, he highlighted.
The CEO ruled out that the local shares would drop below the current levels which highlighted the technical recovery of the markets.
The UAE bourses are projected to further rebound on Wednesday, said Mona Mostafa, technical analyst at the African Economic Council.
The DFMGI has support at 2,821 and 2,806 points and resistance at 2,847 and 2,868 points, while the ADX's general index has resistance at 4,596 points and support at 4,536 points, she added.
Translated by: Kholoud Mohamed Hussein
