By: Mahmoud Gamal
Dubai-Mubasher: The UAE exchanges are still unable to rebound technically in time where no fresh catalyst is emerging to ease pressures by volatile oil prices and global markets.
Dubai Financial Market (DFM) saw a bearish performance for the second session in a row on Wednesday.
The DFMGI is still witnessing losses amid lower oil prices and the high risks facing global markets. This downtrend will pose a serious threat to the bourse if the main index moves below the support level of 3,020 points, said technical analyst Ahmed Al-Zahouri.
The market’s negative performance will continue if Emaar Properties moves below AED 5.55 this week and Arabtec Holding ends below AED 1.11.
Emaar Properties’ stock will be affected by the company’s FY15 financials, said Al-Zahouri. Closing near AED 5.7, the developer’s stock will give a positive sign for the traders of Abu Dhabi bourse.
The market will see profit-taking on the short term till the main index reaches 2,900 and 2,850 points, respectively.
On the other hand, Abu Dhabi Securities Exchange (ADX) saw an upward trend on Wednesday, backed by First Gulf Bank (FGB), Etisalat and National Bank of Abu Dhabi (NBAD).
Short-term outlook for the market remains negative as the index closed below 4,150 points, said technical analyst Mohamed Sonbol.
He advised investors not to trade with more than 20% of their liquidity as the market still faces high risks and speculations.
Translated by: Julian Nabil
