Dubai stocks may fall 6 percent in the next three weeks as the earnings season ends and after concern about Dubai World’s restructuring pushed the gauge below a technical resistance level in March, Rasmala Investment Holdings said.
The DFM General Index is down 4 percent this month, closing at 1,769.34 yesterday. The measure first fell below 1,870 at the end of March. It may drop to 1,670 by May 15, “where the market will find strong support,” Nabil al Rantisi, senior vice president at Rasmala, said. “Now that the market has reacted to first-quarter earnings, investors will be waiting for clarity on the debt issue and second-quarter earnings.”
Dubai said March 25 it will support Dubai World’s debt restructuring with $9.5 billion as one of the three main state- owned holding companies asks creditors to wait up to eight years to get all their money back. The company is seeking to renegotiate terms on $24.8 billion of debt.
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