Two financial analysts said that the current stock market declines have many investment opportunities, provided that the investor has additional "cash" and does not borrow or borrow.
The Gulf and local financial markets continued yesterday, for the second consecutive day, sharp declines, affected by the lack of agreement of the «OPEC» and producers from outside it to extend production cuts.
The Dubai Financial Market Index closed at the end of yesterday's session, down by 8.29% at 2079 points, while the Abu Dhabi Securities Market Index decreased by 8.06% at the level of 4039 points.
The financial analyst, Tariq Qaqish, said that the global markets are witnessing real fears of the decline of the main economies, such as China, which means declining demand for oil, which in turn has affected the Gulf and international financial markets, in addition to the impact of the Corona virus and its repercussions on various sectors of the global economy.
He explained that one of the factors that contributed to the decline in local shares was margin call operations, i.e. mortgaged shares in exchange for bank financing.
Qaqish added that there is an expected bounce, whether for stocks or oil prices, which means that there are real opportunities for those who have additional "cash" that he does not need at the present time, to enter and benefit from the low price of excellent shares, indicating that the investor should not resort to debt to enter. To financial markets, given that there are currently high risks, it is difficult to predict when they will end.
He stressed that the coming period witnesses the arrival of dividends of companies to shareholders and investors, as well as the keenness of shareholding companies to disclose the essential matters and their financial situation in a transparent manner, pointing out that all of this would calm investors' fears and gradually restore confidence to the markets.
For his part, financial analyst Rami Elias said that the declines in global stock markets over the past two days are emotionally charged, while the fundamentals of the local market are solid, and the economy is strong, indicating that it is nevertheless too early to determine the true economic impact of the Corona virus. .
He added: “But in return, historical experiences also show that it is good to buy stocks at the time of the decline, especially at sudden falls, but it is really a reality that allows investors to buy as long as they have additional liquidity away from borrowing.” He pointed out that this in itself is a very rare event, and it allows investors A lifetime chance to make a fortune.