By: Mahmoud Gamal
Dubai-Mubasher: The UAE markets are expected to rebound in the fourth week of 2016 amid the rise of oil prices and positive performance of global markets, as well as investors’ desire to accumulate portfolios and speculate on some selective stocks, analysts told Mubasher
Abu Dhabi Securities Exchange (ADX) closed in the red for the third week in row, weighed by all sectors topped by the energy sector after oil prices fell to the lowest level in 12 years.
The Dubai Financial Market (DFM) maintained its negative performance last week, losing $4.17 billion of its market capitalization.
The rebound of oil prices and global markets will have a positive impact on investors’ sentiment this week so they are likely to limit random selling and focus on leading stocks which reached low price levels, said Tarek Al Essawy, CEO of a financial consulting company.
Al Essawy advised investors to focus on annual financial results which are expected to be good and supportive to local stocks.
The DFMGI is likely to hold above 2,600 points and target 2,820-2,880 points, he said, adding that the 2,200-2,250 points are suitable levels for building positions in the long run.
Translated by: Julian Nabil
