By: Mahmoud Gamal
Dubai – Mubasher: The UAE markets need long-term institutional investments to benefit from the prices reached by some of the shares of the mega companies, so that the market can stablise and rise again, analysts said.
On Sunday, it was clear that foreign investors and institutions were trying to press to reduce the prices before repurchasing them, as the sales pace increased at the second half of the session, technical analyst, Amer Al Mohanady, told Mubasher.
Al Mohanady added that the purchases of the local and Arab investors to the banks and real estate shares were the reason being the UAE markets' slight increase yesterday.
The analyst pinpointed that Dubai Financial Market (DFM) closed unchanged, with traded volume hitting its lowest in five weeks, which indicates the absence of a lot of institutional investors on Sunday.
Lower liquidity makes it hard to technically expect a certain trend for the markets, technical analyst, Doaa Maged, told Mubasher, noting that the overall trend is still "downward," although some rebounds witnessed by the markets yesterday.
The analyst expected that the markets may keep this fluctuating trend in the coming period, till oil prices stablise over the security levels of $55 to the end of December.
Translated by: Sara Ghali
