By: Mahmoud Gamal
Dubai-Mubasher: UAE markets are likely to maintain their bearish performance on the short term amid a state of pessimism and anxiety that is controlling investors due to lower oil prices, analysts told Mubaser.
Abu Dhabi Securities Exchange (ADX) saw a negative perfromance on Tuesday, weighed by heavy selling pressures and investors’ low sentiment on lower oil prices.
Dubai Financial Market (DFM) closed at a decline for the eighth session in row on Tuesday, weighed by negative performance of the banks sector.
Investors’ continuous anxiety and pessimism have a greater pressure on markets than other factors like declining oil prices, said Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI).
The UAE markets are likely to continue their downward trend amid absence of real catalysts, he said, adding that the markets lack investment liquidity.
On another note, technical analyst Hamoud Al-Azmi said that low liquidity pushes traders to repeat profit-taking on stocks with marginal gains, causing fluctuations in the markets.
Translated by: Julian Nabil
