By: Mahmoud Gamal
Dubai – Mubasher: Analysts have set five main factors to restore investor confidence in the UAE stock markets, including the first half of 2018 financial results, in addition to higher liquidity ratios and rising local gains.
By the end of Sunday’s trading session, the Dubai Financial Market’s (DFM) general index edged up 0.17% to 2,885.35 points, while the Abu Dhabi Exchange’s (ADX) general index added 0.27% to 4,615.46 points.
Expectations
Profits of seven UAE listed firms are expected to grow, including Emirates NBD, whose profits are projected to rise by 14% to AED 2,312 million, according to a recent report by Bahrain-based SICO Investment Bank.
Moreover, Abu Dhabi Commercial Bank (ADCB) is forecast to an 11% profit rise to AED 1,117 million, while Dubai Islamic Bank’s (DIB) profits are expected to jump by 6% to AED 1,117 million.
The report also forecast that Emaar Malls’ profits will increase by 19% to AED 575 million. Profits of Etisalat and Emaar Properties are expected to grow by 17% to AED 2,303 million, and 1% to AED 1,472 million, respectively. While Aramex is projected to post a 13% profit increase.
Anticipation
The twin UAE stock markets are waiting for major companies’ disclosures after overcoming the claims of The Abraaj Group's crisis, vice president of Investment Research at KAMCO Raed Diab said.
Liquidity ratios in the local equity markets are likely to recover, particularly after most of the stock prices have hit significant purchasing levels, Diab projected.
The DFMGI might test 2,950 and 3,000 points as it broke 2,877 points, he highlighted, pointing out that the ADX’s general index must surpass 4,620 points to resume the upward trend towards 4,745 points.
Translated by: Mai Ezz El-Din
