By: Mahmoud Gamal
Dubai – Mubasher: The UAE bourses are likely to see a positive performance during December on the back of the recent initial public offerings (IPOs) and the Organization of the Petroleum Exporting Countries’ (OPEC) decision to extend output curbs.
The UAE markets will resume trading after a holiday, lasted from 30 November to 3 December, in celebration of Prophet Mohamed's birthday, Commemoration Day, and the UAE’s National Day.
Anticipated bullish trend
The UAE bourses are expected to see a significant bullish trend during December after OPEC’s decision, financial analyst at Menacorp Financial Services Essam Kassabia told Mubasher.
Oil prices are still a main factor for stocks’ performance to settle, Kassabia indicated, noting that crude oil priced at $60 per barrel (pb) may push stocks higher over the coming period.
Liquidity also may reach higher ratios, mostly towards stocks that fell to its lowest levels in years, he highlighted.
Liquidity is expected to resume boosting, in line with the completion of Emaar Development’s and ADNOC Distribution’s IPOs, Kassabia added.
Positive vision
The UAE bourses have a technical ability to rise amid the anticipations of liquidity improvement after the completion of the IPOs launched last month, NamaaZone CEO Iyad Aref told Mubasher.
The Dubai Financial Market General Index (DFMGI) has to settle above 3,474 points to carry on the upward wave, Aref mentioned, adding that this will restrain the index from declining to hover near 3,568 points.
The DFMGI may continue the negative performance it saw in November if it moved towards 3,382 points, he highlighted, adding that it may test 3,302 and 3,320 points as a consequence.
He further noted that the Abu Dhabi Securities Exchange (ADX) is still witnessing a bearish trend and it needs to surpass 4,330 points to see momentum at 4,416 points.
The main index of the ADX may test 4,240 and 4,220 points if it moved below 4,260 points, Iyad alluded.
Translated by: Mai Ezz El-Din
