By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to see a choppy performance in Thursday’s trading session as global stock markets plunged due to rising geopolitical tensions.
By the end of Wednesday’s trading session, the Dubai Financial Market’s (DFM) general index jumped 1.4%, while the Abu Dhabi Securities Market’s (ADX) general index dipped 0.47% to 4,689.74 points.
The US stocks closed Wednesday in red territory amid clashes between the US and Russia regarding a possible missile strike on Syria.
It is worth noting that US president Donald Trump has taunted Russia, that vowed to shoot down any airstrike. "Get ready Russia, because they will be coming, nice and new and 'smart!" Trump said.
Accordingly, the Russian ambassador to Lebanon threatened that any US missiles fired at Syria would be downed.
Investors in the UAE bourses may be cautious and careful during today’s trading session, which will be shown in liquidity ratios, CEO of NamaaZone Iyad Aref told Mubasher.
The local stock markets do not suffer from thin liquidity, but they are negatively affected by investors’ lack of confidence in the markets, he added.
For his part, vice president of Investment Research at KAMCO Raed Diab said that investors in UAE’s twin bourses lack confidence in the markets amid the anticipation of firms’ financial results for the first quarter of 2018.
The DFM needs positive momentum buying above resistance at 3,140 points to diminish the risk of seeing a bearish trend and move upwardly towards 3,220 points, he highlighted.
Diab further noted that the DFMGI may face selling pressures to fall to 3,000 points, or even below 2,960 points.
Translated by: Mai Ezz El-Din
