By: Mahmoud Gamal
Dubai – Mubasher: The UAE markets’ stability is dependent on the entry of long-term institutional investors to make use of some blue-chip companies’ attractive stocks on Wednesday, in line with absorbing the cut of diplomatic relations with Qatar, analysts told Mubasher.
Most portfolio investors tended to make purchases worth AED 15.34 million on Tuesday, while Arab, Gulf, and local traders made purchases worth AED 26.7 million.
The markets saw high sales in the second half of Tuesday’s session, reflecting that foreign and Arab investors are trying to pressure down stocks’ prices before repurchasing them, capital market analyst Amer Al Mohanadi said.
Non-Arab investors tended to liquidate stocks, recording sales worth AED 26.7 million on Tuesday.
Buying investment and some real estate shares on Tuesday showed that portfolio investors wanted to hold stocks despite the markets’ volatility, he added.
The UAE bourses will see an accumulation of stocks which reached low price levels, Al Mohanadi noted.
The markets are expected to see gains as individual and institutional traders are tending to make use of some good investment opportunities, capital market analyst Ahmed Ismail said.
The markets’ biggest challenges are the current low level of liquidity and decline of some blue chips, like Emaar Properties.
Translated by: Julian Nabil
