By: Mahmoud Gamal
Mubasher: The UAE stock markets are expected to hit record highs over the coming trading sessions on the back of five main factors, capped by cash dividends of listed-firms.
The Dubai Financial Market (DFM) closed Sunday’s trading session slightly up by 0.17%, while the Abu Dhabi Securities Exchange (ADX) added 0.40% by the end of the session.
Market capitalisation of the UAE’s twin bourses is nearing AED 873.64 billion after it gained around AED 4.8 billion on Sunday, according to Mubasher Statistics.
Investors in the UAE bourses are likely to resume selective buying on blue-chip stocks which maintained the upward trend yesterday, a senior financial analyst at Menacorp Financial Services Issam Kassabieh told Mubasher.
Local stocks have revived and hit attractive levels recently following the cash dividend distributions’ eligibility period for many major firms, which will boost investor confidence in the markets, Kassabieh highlighted.
He indicated that Emirates NBD’s acquisition of Turkey's Denizbank from Russia's state-owned Sberbank, in addition to the potential initial public offering (IPO) of the Dubai-based lender’s unit, Network International, on the London Stock Exchange (LSE), have boosted purchasing transactions in the DFM.
Moreover, GFH Financial Group’s intention to be listed on the Saudi Stock Exchange (Tadawul) prior to the end of 2019 have pushed up purchases in the local markets, Kassabieh added.
He remarked that the UAE’s energy sector is likely to improve, especially after ADNOC Distribution changed its dividend distributions policy.
Dana Gas
Kassabieh also said that Dana Gas, which rose 0.52% to AED 0.99, is one of the main factors that would boost the ADX in line with the company’s general assembly to be held next Wednesday.
Investors are anticipating new liquidity to be pumped into in the UAE stock markets on the back of scheduled general assembly meetings of many listed-firms, he added.
New catalysts
For his part, Ehab Rashad, CEO of Al Safwa Mubasher Financial Services (MFS), said that the UAE stocks are performing positively, backed by the constant emergence of new market-boosting catalysts, mainly Emirates NBD.
Rashad projected the DFM to see a wave of profit-taking this week after snapping a seven-session winning streak on Sunday.
He stressed that the local bourses need further liquidity over the coming sessions to maintain the bullish trend and break records.
Translated by: Mai Ezz El-Din
