By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are sluggish now and need new market-boosting catalysts, topped by firms’ financial results for the first quarter of 2018 and the new initial public offerings (IPOs), to direct liquidity towards stocks and resume the bull run again, analysts told Mubasher.
By the end of Tuesday’s trading session, the Dubai Financial Market’s (DFM) general index slid 0.21% to 3,100.39 points, pressured by Emaar Properties, while the Abu Dhabi Securities Market’s (ADX) general index closed the session up 0.08% to 4,585.21 points.
Investors need to regain confidence in the UAE bourses, as the markets need new positive catalysts, such as firms’ financial results in Q1-18, in a bid to attract investors to trade on stocks, CEO of NamaaZone Research Iyad Aref said.
The local stock markets have seen a stable performance yesterday, particularly the DFM, Aref added.
The DFMGI is expected to break above 3,136 points over the coming sessions if it maintains settling above 3,081 points, which will push the DFM towards recovery, he indicated.
Aref further noted that the DFMGI has resistance at 3,171 and 3,216 points, which will bolster the market to extend gains and improve liquidity.
The index has a main support at 3,081 points, and has a downside potential at 3,000 points, he said.
For his part, technical analyst Mohamed Al-Azmi said that stocks’ prices are currently hitting attractive levels ahead of the announcement of companies’ Q1-18 financial statements.
Firms’ financial results will support the local bourses to revive and boost liquidity ratios, in line with the absence of the institutional investments, he highlighted.
Al-Azmi stressed that the performance of the UAE’s twin bourses over the past period came short of forecasts amid the positive expectations regarding the country’s future and firm’s financial results.
Translated by: Mai Ezz El-Din
