By: Mahmoud Gamal
Dubai-Mubasher: Stock markets in the UAE are still in need for more liquidity to be pumped on Tuesday in order to break the current key resistance levels, amid speculative performance as well as the falling oil prices and mixed activity of global markets, analysts told Mubasher.
The UAE stock exchanges need speculative, not investment, liquidity. Thus, traders should be alert in the coming period as profit taking may commence with the strong rises seen at the US markets, said capital market analyst Basel Abo-teima.
The UK’s inflation rate which is expected to be announced on Tuesday will play a key role in defining the path of global markets as well as local markets, he added. Furthermore, the continuous fall of oil prices below $50 per barrel is among the current negative impacts which affect the UAE markets, namely Abu Dhabi Securities Exchange (ADX).
It is hard to expect a specific direction of the markets from a technical view; however, the general performance tends to be sideways, said capital market analyst Wael Mohaisen.
He noted that foreign investors as well as a number of investment portfolios may exit the market once the actual financial statements of the first half of 2016 are announced.
Dubai Financial Market (DFM) indicates to a technical possibility of continuing its positive performance as well as approaching the level of 3,550 points, said technical analyst Mohamad Al-Kaabi.
He added that ADX’s index may target the level 4,560 points on Tuesday.
Translated by: Ingy ElSafy
