Business | Markets
UAE stock markets likely to be volatile next week
The UAE markets are expected to be volatile next week and the trend will be the same until the first half of next month when year-end results start coming out, according to local traders.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:41 December 11, 2008
Dubai: The UAE markets are expected to be volatile next week and the trend will be the same until the first half of next month when year-end results start coming out, according to local traders.
Volumes are expected to start picking up on Sunday, largely retail dominated, but this segment, according to one trader, would not be investing more than 10 to 20 per cent of their cash in stocks in light of the prevailing negative sentiments.
"People are still worried and there is not a positive yet," said Mousa Haddad, head of trade, National Bank of Abu Dhabi. "The trend on the charts is downward. And retail will be trading in and out -they will be trading that volatility and there will be risk in that volatility."
Agreeing that there will definitely be volatility, a trader Sherif Khalek of Belten Securities said the market is less likely to witness the huge declines such as that of November. "Any positive in the very short-term - markets going up one or two days, will be followed by a bout of profit taking."
As has been the trend for many months now, the first day next week will very much depend on how the Saudi Arabia's index ends on Saturday.
"Let's see how Saudi behaves and 4,700 is a critical level for that market," said Haddad. "If it falls below that mark, it will be reflected over here and you will then see low levels here."
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