By: Mahmoud Gamal
Dubai – Mubasher: The stability of the two UAE markets on Thursday is bound by the return of long-term institutional investment to make use of the attractive price levels of major companies, ahead of the announcement of first quarter financials, analysts told Mubasher.
Investment portfolios were mostly sellers on Wednesday, with AED 2 billion net selling by portfolios on Abu Dhabi, according to data published on the market.
Arab and Gulf investors in UAE markets are trying to pressure prices to bring them down before repurchasing stocks, said market analyst Walid Khattab.
The rise in selling in the second half of Wednesday's session was quite evident, according to the analyst.
Overall selling by Arab and Gulf investors on the twin markets reached AED 29.2 million, of which Arab sales netted AED 3.7 million and Gulf sales netted AED 25.45 million, according to the data.
As we near the period for reporting first quarter financials, investors will likely start recollecting shares that they project will have good financial results, Khattab told Mubasher.
Meanwhile, market analyst Doaa Farouk noted that UAE markets continue to have a significant amount of speculation, especially as the period for reporting financial data approaches and as investors await new catalysts to boost the market.
Technically, the decline in liquidity makes it hard to predict a market trend, she said, indicating that this lack of clarity prompts investors to refrain from re-entering the market.
Translated by: Nada Adel Sobhi
