By: Bedour Al Raey
Abu Dhabi – Mubasher: UAE stock markets are likely to achieve strong gains, after the OPEC decision to cut the crude production to reduce the global glut, analysts said.
Large number of investors is still maintaining their investment positions in some stocks, like Eshraq Properties, with an optimistic view for December performance and with no intension to sell, Eyad Al Buraiki, general manager of Al Ansari Exchange, told Mubasher.
Al Buraiki expected that the first week of December will witness a rise, as any decision to be taken by the OPEC will affect the markets' performance significantly.
The benchmark index of the Dubai Financial Market (DFM) grew in November by 0.8% or 28.5 points to the level of 3,360.91 points, backed by the investment and transport sectors.
The Abu Dhabi Securities Exchange (ADX) witnessed gains in November amid higher trades, spurred by the growth of banks and real estate sectors.
The focus will probably be on the leading stocks during the first week of December, which will mainly depend on the results of production cut discussions between OPEC producers and other producers, Al Buraiki said.
Moreover, Muhannad Oraikat, technical analyst at Masaken Capital, said that the purchasing power will probably control the UAE markets on Sunday, which are under correction operations since the beginning of the week.
Oraikat expected that the liquidity levels will rise by the end of the fourth quarter of the year, with the readiness of the portfolios to move to the operating stocks before the dividends distribution season.
Translated by: Sara Ghali
