By: Mahmoud Gamal
Dubai – Mubasher: The indices of the UAE bourses are likely to test significant levels on Monday amid looking for new market-boosting catalysts, in line with anticipation of firms’ quarterly financial results, analysts told Mubasher.
The UAE bourses closed Sunday’s trading session on a mixed noted as the Dubai Financial Market (DFM) edged up 0.9% to 3,136 points, while the Abu Dhabi Securities Market (ADX) inched down 0.04% to 4,583.53 points.
Accordingly, the local stock markets have seen a stable performance yesterday, mainly the DFM which is projected to recover and close the coming sessions above 3,136 points, CEO of NamaaZone Research Iyad Aref told Mubasher.
The DFMGI has resistance at 3,171 and 3,216 points, which are significant levels that will pave the way for the index to revive and lure liquidity, Aref added.
The DFMGI may fall below 3,000 points if it tests support below 3,081 points, he indicated.
Investors need to regain confidence in the UAE stock markets and wait for companies’ financial results for the first quarter of 2018, Aref noted.
Threatened upward trend
For his part, technical analyst Mohamed Al-Azmi said that trading volumes are still weak which would negatively affect investors’ confidence in the UAE bourses.
Price-to-earnings ratios in the local stock markets are still not high, but are relatively attractive as their current levels allow further gains, he added.
Al-Azmi recommended investors to trade cautiously while activating stop-loss points on traded stocks or to be patient and make sure of the current oil industry.
Translated by: Mai Ezz El-Din
