By: Mahmoud Gamal
Dubai – Mubasher: UAE bourses are expected to continue to cling to current levels on Monday as some portfolios increase their investments despite fluctuation in global markets and a decline in oil prices, analysts told Mubasher.
Despite the indicators that UAE markets are still seeing profit-taking, institutional investments seem to be increasing, which confirms that stocks are at good E/P ratios, commented market analyst Mohamed Kamal.
On the Dubai Financial Market (DFM), institutional investment buying on Sunday amounted to AED 89.03 million versus AED 86.99 million in sales, netting AED 2.044 million in purchases.
Meanwhile, on the Abu Dhabi Securities Exchange (ADX), institutions bought AED 2.2 billion in stocks versus sales of AED 1.2 billion, netting AED 119.66 million in buying.
UAE markets held fairly well on Sunday on the back of quick transactions that were executed on leading and small stocks in the last hour of trading, the analyst said.
Attractive stock prices have attracted investors towards major companies, particularly those in real estate, such as Arabtec, Drake & Scull International (DSI), Emaar Properties and Manazel, Kamal commented.
Meanwhile, analyst Hassan Al Zawy highlighted that there are negative indicators for the DFM despite Sunday’s closing, noting that the market will not stabilise until it passes the level of 3,523 points.
Al Zawy advised traders to be “extra cautious” during the coming period as oil and global markets are testing important levels, particularly amid forecasts of increased US oil stockpiles, which have weakened the resolve to renew the agreement to trim production by the Organization of Petroleum Exporting Countries (OPEC).
Translated by: Nada Adel Sobhi
