By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are awaiting new market-boosting incentives including first quarter financial results, analysts told Mubasher, noting that the conclusion of the period for annual dividend distributions will allow investors to re-inject their dividends into the markets.
The Dubai Financial Market (DFM) closed the week in the red amid selling pressures and low turnover, whereas the Abu Dhabi Securities Exchange (ADX) surged 2.25% during the week on positive performance by its blue chips.
Investor interest
Investors will be strongly focusing on companies’ Q1-18 results, which many ascribe as being market-moving catalysts and sources of momentum in the coming period, commented Fadi El-Ghattis, CEO at Mindcraft Consultants.
Many institutional investors are looking for the right time to invest their money, particularly in the ADX, which El-Ghattis views as having been seeing strong purchasing momentum recently after stocks retreated to price levels not seen in several years.
The recent absence of positive catalysts has pressured market performance lately, the analyst noted, but confirmed his optimistic view for local stocks in the coming period.
A recent report by Bahrain-based SICO forecast that leading companies in theUAE’s twin bourses will see declines in their Q1 results.
Emaar Properties’ profits are expected to fall by 1% to around AED 1.372 billion in Q1-18, while ADX-listed First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB) will likely see their results decline by 2% each, the report showed.
Technical View
Meanwhile, NamaaZone CEO Iyad Aref said that the DFM was still technically above support at 3,081 points, noting that it will target returning to 3,171 and 3,220 points. Should the DFM rise above the latter level, it will attract investments once more, he added.
As for the ADX, Aref said that market was technically at January’s high of 4,651 points and had recorded “an outstanding weekly performance” having risen by 2.25% to 4,688 points.
From a technical perspective, the ADX will soon target resistance at 4,900 points, the analyst concluded.
Translated by: Nada Adel Sobhi
