By: Mahmoud Gamal
Dubai – Mubasher: The recent broad declines after concerns following UAE-based investment giant Abraaj's crisis added to the hazy future for Drake & Scull International (DSI) have recently resulted in a host of opportunities for investment portfolios, which have begun some selective purchases, an analyst told Mubasher.
By the end of Wednesday's trading session, the Dubai Financial Market (DFM) gained 0.80% to 2,861.16 points, while the Abu Dhabi Securities Exchange (ADX) increased 0.53% to close at 4,593.90 points.
The "hold" seen across the two UAE markets in the previous sessions is an indicator that markets have overcome selling pressures and might begin to see some sideways movements, the analyst added.
Investors are now looking to acquiring stocks that have fallen to low and attractive levels, said Raed Diab, vice president of investment research at KAMCO, indicating that investment portfolios and foreign institutions will be keeping an eye on such stocks.
UAE markets seem to have "digested" the Abraaj crisis ahead of the disclosure period for companies' second quarter results, he told Mubasher.
From a technical perspective, Diab said that the DFM was likely to see strong purchasing power in the coming period, indicating that a rise above 2,877 points could boost the general index towards 2,950 and 3,000 points.
However, a fall below 2,877 points would prompt further declines towards 2,700 on the back of increased risks, he added.
As for the ADX, the analyst forecast that it would see some jittery performance in the coming sessions until it is clear that the market has overcome the recent losses.
Technically, the ADX will see strong buying momentum above 4,620 points, and may rise towards 4,745 points, Diab told Mubasher. He noted that a fall below 4,565 points may result in a decline towards 4,525 points, which in turn may prompt a further loss to 4,495 points.
Translated by: Nada Adel Sobhi
