By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are anticipating new market-boosting catalysts amid projected annual financial statements, annual distribution of dividends, and new projects, which may push up indices in January.
By the end of 2017, the Dubai Financial Market (DFM) dropped 4.5% and the Abu Dhabi Securities Exchange (ADX) fell 3.25% as investors were concerned over the geopolitical scene in the region.
Trades on the UAE's two bourses will be resumed on Tuesday, 2 January, after the Federal Authority for Government Human Resources announced that the New Year holiday would start from Sunday to Monday.
Value-added tax
The next three trading sessions of this week are expected to be somehow calm, in line with the introduction of the value-added tax (VAT), financial analyst at Menacorp Financial Services Essam Kassabia told Mubasher.
The 5% VAT has no impact on the stocks as it is low compared to other countries, Kassabia stressed.
Investors are currently waiting for new catalysts ahead of firms’ announcements of annual financial statements, he indicated.
Boosting demand
Moreover, capital market analyst Gamal Abdel Hamid said that traders are waiting for firms’ annual financial results which are expected to be announced during the first two weeks of 2018.
Any growth in profits will remarkably contribute to boosting demand and liquidity in the markets and push stocks higher, Abdel Hamid added.
It is notable that the UAE stock markets are no longer affected by oil price or the global markets, he noted.
Emaar Properties’ stock is likely to reach AED 7.48 and AED 7.77 over the coming sessions, he forecast.
The Dubai Financial Market General Index (DFMGI) is likely to break above 3,382 points to test 3,403 and 3,538 points if blue chips, such as Emaar, Dubai Islamic Bank (DIB), Dubai Investments, and DAMAC, maintain the upward trend.
Furthermore, NamaaZone’s CEO Iyad Aref forecast the DFM's performance to improve within days if the DFMGI breaks above 3,400 points.
Aref noted that the DFM’s buoyant liquidity, which increased near AED 600 million, drove investors towards trading on stocks again ahead of the projected announcement of firms’ financial statements.
Translated by: Mai Ezz El-Din
