UAE – Mubasher: A state of hesitation and uncertainty has controlled UAE market lately amid anticipation regarding the Greek financial crisis, which is affecting both regional and global markets, analysts told Mubasher.
The Abu Dhabi Securities Exchange (ADX) closed Monday at a rise, its third in a row, backed by the telecom sector’s Etisalat. Meanwhile, the Dubai Financial Market (DFM) ended Monday at a decline amid negative performance in the banking sector’s Emirates NBD and Dubai Islamic Bank (DIB) along with Arabtec and Dubai Investments (DI).
Ramy Rashad, member of the American Association of Technical Analysts and head of consultations at MubasherTrade – UAE, said that the ADX index has seen a general rising trend since the end of 2014 and the beginning of 2015.
The ADX has seen strong resistance in its rise particularly at the level of 4,700 points, which it succeeded in passing owing to its stock Etisalat amid high traded volumes, the analyst said, adding that the resistance level shifted to a support level after the index passed it.
As long as the market trades above this level, it is likely to keep rising and target the level of 5,000 points, Rashad added. Meanwhile, the short-term trend for the DFM is a sideways one. Breaking support levels is a negative aspect; however, passing the levels of 4,250 and 4,500, respectively requires high traded volumes and positive news, the analyst noted.
Rashad said he expects the DFM to continue its sideways performance till the end of Ramadan, amid anticipation for companies’ second quarter financials.
