By: Mahmoud Gamal
Dubai – Mubasher: The Emirate stocks are still attractive for investors as compared with the GCC bourses despite the external pressures, mainly concerns over US President Donald Trump's tariffs on imported steel and aluminum, as well as the global trade war, analysts told Mubasher.
The UAE stock markets suffer from the absence of fresh market-boosting catalysts, following the announcement of firms’ financial results and dividends for 2017.
The financial situation for most of the listed companies on the local bourses will push the stocks to compensate the monthly losses like the US stocks which have not been impacted by the global trade war, analysts emphasised.
Increased speculations
Speculations are still dominating the UAE bourses’ trades, particularly secondary-listed stock, topped by Ithmaar Holding and GFH Financial Group, said Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities and Investments (CISI).
Traders are currently inclining to speculations in order to compensate losses quickly, Al-Taha explained.
Investors have shown a great interest in secondary stocks, even its market capitalisation does not exceed 6.5% of the Dubai Financial Market’s (DFM) total market cap, he indicated.
The financial indicators of some firms have been good in general, mainly blue chips such as Emaar Properties, Dubai Islamic Bank (DIB), and Abu Dhabi Islamic Bank (ADIB), in spite of the weak performance the local stock markets have witnessed over the past period, he said.
On the other hand, financial results of some other firms were not good such as Union Properties, Arabtec Holding, and Drake and Scull International (DSI), he added.
Recurring profits
Investors should be highly aware of the management of the local bourses, authorities, brokerages, Al-Taha stressed.
The UAE bourses, particularly the DFM, has seen recurring profits more than nine times, he highlighted, adding that this is a positive indicator.
The operational situation of some UAE stocks is good now, but the absence of local institutional investment is the main reason behind the recession on the stock markets, he noted.
Translated by: Mai Ezz El-Din
