By: Mahmoud Gamal
Dubai – Mubasher: UAE bourses are awaiting market-boosting incentives so that investors may pump more liquidity. News of strong first half results and companies' expansion plans are expected to play a major role in stock gains in the coming period.
There is a relative state of stagnation in market performance due to the summer holidays, an analyst told Mubasher, forecasting that markets would resume their strong activity after the Eid Al Adha holiday in late August and with the arrival of more financial results.
Expansion plans
Bourses are relying heavily on local companies' financial results to act as a market driver in the coming period added to firms' expansions, commented Issam Kassabieh, senior financial analyst at MenaCorp.
He noted that investors will mainly be focused on the telecommunication sector and its stocks du and Etisalat on Monday, both of whose results are projected to be good.
Investors are increasingly keeping an eye out for banks' expansions outside the UAE, particularly First Abu Dhabi Bank (FAB), which is often able to maintain its costs well and is looking to expand in the Saudi market, the analyst told Mubasher.
Kassabieh confirmed that there were already enticing incentives in the market including the significantly low prices of several stocks added to banks already-disclosed results.
The main challenge remains in attracting liquidity from portfolios which have begun investing in local real estate, whose stocks have fallen to never-before-seen price levels, the analyst added.
Translated by: Nada Adel Sobhi
