By: Mahmoud Gamal
Dubai – Mubasher: The UAE stocks may rise in the forthcoming trading session based on improved liquidity levels following the Cabinet’s recent decisions, analysts told Mubasher.
Last week, the UAE Cabinet, headed by vice president and ruler of Dubai Mohammed bin Rashid Al Maktoum, announced a new long-term visa to some international investors and talented professionals, allowing 100% foreign ownership in companies.
By the end of Sunday’s trading session, the Dubai Financial Market (DFM) slid 0.76% to 2,932.09 points, and the Abu Dhabi Securities Exchange (ADX) fell 1.40% to 4,536.82 points.
The main indices of the UAE’s twin bourses have closed last week on a mixed note and they are carrying on the rebound this week amid profit-taking and sell-offs, technical analyst at the African Economic Council Mona Mostafa said.
Meanwhile, some of the blue-chip stocks remained stable on Sunday, while the others fell, Mostafa added.
The UAE stock markets were expected to see profit-taking after reaching resistance levels that have been an obstacle for the indices and stocks, she highlighted.
Investors have been recently optimistic about the local markets, inclining to buy stocks in order to benefit from lower prices, she indicated, pointing out that many stocks have hit attractive levels.
The anticipated growth in the UAE economy this year is still the main market-boosting catalyst, which will guarantee a profitable investment opportunity for several sectors, she noted.
The Emirati government’s efforts to lure foreign investments to the local market, in addition to the latest regulations, have positively impacted capital markets, the analysts said.
The UAE stock markets may maintain the mixed performance this week, she added, forecasting that the stocks may see a downward trend until mid-week amid selling pressures.
She further noted that the DFMGI has support at 2,912 and 2,880 points and resistance at 2,975 points.
Moreover, the ADI may see purchases at the support level of 4,475 points and rebound to 4,590 and 4,610 points, she added.
Translated by: Mai Ezz El-Din
