Markets in for a tug of war

The UAE stock markets will move in a sideways range for the next fortnight, although volumes are not expected to fall substantially.

"By sideways, we mean the market can move in a two to three per cent range up or down," said Amro Diab, EFG Hermes head of institutional sales.

"I think Q2 results have already been priced in and I doubt there will be any big positive surprises – expectations are already high."

The DFM added 0.41 per cent last week, while the ADX fared better, climbing an impressive 2.5 per cent.

"Retail traders are driving both markets and they prefer stocks that are cheap in absolute terms – the penny stocks that cost Dh3 or less. There are more of these in Abu Dhabi, so it has been attracting more volumes recently."

The likes of Methaq, Arkan and Aabar have dominated trading of late. Diab is not unduly worried by this market speculation, providing volumes in these stocks don't suddenly collapse.