UAE, Gulf stocks should hold the line even as Dow keeps wobbling

UAE, Gulf stocks should hold the line even as Dow keeps wobbling

Dubai: Continued demand for property investments and oil at or around $100/barrel should help UAE stocks withstand the level of uncertainty coursing through global markets. In the last two days, the key DFM and ADX indices have been moving within a narrow range, and a similar trend could there when markets open today. Last evening, analysts had been expecting a stormy start for UAE stocks after the Dow dropped more than 500 points. But the losses were trimmed to 208 points, while the tech-heavy Nasdaq even being in the green for some time before closing slightly down. So far, so good, and major Asian markets have started the day in flat or relatively positive territory, with the exception of Singapore's, at 8.40 UAE time. So, what’s likely for UAE stocks in the short-term? “We have seen in the past that ADX and DFM do react to recession worries at a much later stage,” said Vijay Valecha, Chief Investment Officer at Century Financial. “That could be the possibility even this time around. “Although interest rates have been rising on pace in the UAE and the GCC, the equity and bond markets are still not experiencing a drastic downtime. The major reason