By: Mahmoud Gamal
Dubai – Mubasher: The stability of UAE stock markets on Wednesday and Thursday is bound by long-term incoming institutional investments amid overall optimism towards Arabtec’s and Emaar’s stocks and continued disclosures of financial results, analysts told Mubasher.
Investment portfolios’ net buying reached AED 38 million on the Dubai Financial Market (DFM) on Tuesday, whereas in the Abu Dhabi Securities Exchange (ADX), portfolios’ net sales amounted to AED 10.95 million, according to data published on the two bourses.
Optimism was a dominant feature in UAE markets on Tuesday, backed mainly by "optimistic trading" on Emaar Properties and expectations of positive financials for 2017, commented analyst Amer Al Mohanady.
The decision taken by Arabtec’s shareholders for the capital restructure programme will reduce concerns towards the stock and may result in a resumption of liquidity, he added.
Foreign and Gulf investors’ interest in purchasing real estate stocks on Tuesday is most likely what prompted portfolios to cling to their stocks, Al Mohanady noted.
On the other hand, analyst Doaa Farouk highlighted that the low levels of liquidity on the two UAE markets makes it hard to predict a market trend from a technical point of view, noting that there might be some corrections, which may not indicate exiting the declining trend.
Translated by: Nada Adel Sobhi
