Dubai-Mubasher: UAE markets are expected to hold steady following a recent correction process and a fall in stock prices to attractive buying levels, analysts told Mubasher.
On Monday, the Dubai Financial Market (DFM) ended in the red to reach its third decline in a row, following pressure from the real estate and banking sectors alongside retreating liquidity.
The Abu Dhabi Securities Exchange (ADX) ended lower as well yesterday to break a four-session rise, after being weighed down by the telecom, energy and real estate sectors.
The markets’ bearish performance on Monday was mainly attributed to lower oil prices and absent catalysts, said Ehab Rashad, Managing Director, Direct Broker for Securities – Mubasher, Egypt.
Investors cautiously await the US Federal Reserve meeting on the interest rates, added the analyst.
The markets are expected to rebound in the second half of September on the condition that oil prices stabilise and new catalysts appear to encourage investors to pump new investments.
DFM is witnessing trades near the support level of 3,500 points, Sameh Gharib, head of technical analysis at Roots Stock Brokerage House.
Breaking below that support level, the general index will move to the lower level of 3,400 points amid increasing selling pressures, according to Garib.
Gharib noted that the index has an opportunity to rebound and reach 3,680 if it breaks above the said the support level.
Commenting on the ADX performance, the analyst said that the benchmark index managed to reach the highest level at 4,567 points since its decline in August.
The index currently sees resistance at the 4,567-point level, Gharib noted, adding that it will likely break above that resistance level and target 4,660 points.
