By: Mahmoud Gamal
Dubai - Mubasher: The Dubai Financial Market (DFM) continued its rising trend in January, as selective buying activity returned on some of the blue chip stocks.
The main index grew by 3.2% or 111.97 points in January, and closed at the level of 3,642.85 points.
The CEO of Think Financial Studies (TFS) said to Mubasher that the UAE markets received great support from active trade on small and booming stocks in January.
Fadi El Ghattis added that some of the banks’ initial financial results showed stability which is a good indicator for investor and traders in the market.
The services sector helped the market rise as it gained 8.6% on the back of Amanat Holdings which surged 17.2%.
Insurance increased by 8.5%, as Islamic Arab Insurance Company (Salama) grew 13.24%, while banks added 6% as Dubai Islamic Bank (DIB) went up 6.8%.
The investment sector index also rose by 4.05%, as Dubai Investments levelled up by 3.8%, while the real estate sector gained 2.7%, as Emaar and Arabtec increased by 4.2% and 3.5% respectively.
El-Ghattis also said that the Emirati markets are beginning to stop being affected by oil, he noted that despite the stability seen in oil prices this month, the stock market saw big gains.
For the UAE markets to see a stable performance next month, it needs to see steady results by the banks that are yet to announce its financial results amid expectations of negative results for real estate companies, El-Ghattis added.
Traded values increased to AED 15.67 billion compared to AED 12.08 billion in December, while volumes reached 12.85 billion shares up from 9.52 billion shares.
The net buying activity of foreign investors reached AED 15.46 million and it helped the market rise, while Arab, Gulf, and Emirati investors were net buyers at AED 245.62 million.
The main index failed to exceed the levels of 3,720 - 3,750 points in January, which could be a sign for a retreat to the levels of 3,200 - 3,500 points, the CEO of TFS added.
El-Ghattis also expects investors to lean towards blue chips in February, after the stable performance it saw this month in the midst of announcing annual financial results.
Translated by: Moslem Ali
