By: Enas Bahgat
Dubai – Mubasher: Following the recent declines across UAE bourses, one analyst now expects modest fluctuation during October.
UAE stock markets are forecast to see modest performance after the end of the third quarter of 2018, Waddah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities & Investments (CISI) told Mubasher.
He noted that the reason behind his forecasts was that the real estate sector would be affected by the market’s saturation in the coming period.
In Q3-18, the Dubai Financial Market (DFM) grew 0.5% or 13.95 points and closed at 2,834.95 points, while the Abu Dhabi Securities Exchange (ADX) jumped 8.23% to reach 4,935.370 points.
Al Taha expects Emaar Properties’ stock to see some positive trades in the coming sessions as opposed to other real estate stocks. However, he stressed that investors should not focus on a single sector, but rather on several stocks in a number of sectors.
This piece of advice he said was meant especially for speculative traders.
The analyst projected that the banks sector would see positive performance during the month, noting that the sector might see some declines towards the end of the fourth quarter.
As for October’s performance in general over the past eight years, Al Taha noted that bourses saw four “Octobers” of gains and four of losses between 2011 and 2018.
What is worrying is the shrinking liquidity in the DFM lately, the analyst told Mubasher, noting that turnover may continue to drop until the end of 2018.
By the end of Sunday’s trading session, which marked the start of the second week of trades in October, the DFM edged down 0.06% or 1.54 points to close at 2,790.17 points, its fourth straight decline, while the ADX lost 0.34% or 16.87 points to end at 4,990.25 points.
Translated by: Nada Adel Sobhi
