Dubai – Mubasher: The UAE stock markets are expected to continue their sideways-to-declining performance during Tuesday’s trading session, in line with drop of leading stocks, especially Emaar Properties’ stock, analysts told Mubasher.
On Monday, the Dubai Financial Market (DFM) shed 0.7%, closing at 3,618.24 points, whereas the Abu Dhabi Securities Exchange (ADX) inched up 0.01% to reach 4,498.71 points.
Emaar Properties’ announcement about reducing its subsidiary's planned stake to list to reach 20% instead of 30% impacted negatively on the UAE bourses’ indices on Monday and Sunday trading activities, NamaaZone’s CEO Iyad Aref told Mubasher.
The planned IPO will be implemented for the unit Emaar Investments and Real Estate Development.
Lack of information about the planned distributions of Emaar Properties’ unit during the coming three years if it will include the parent company's stake or not, led investors to a state of caution, Aref added.
The DFM will face stress tests during Tuesday’s trading session due to lack of these information.
Some of individual portfolios currently prefer to start liquidating and profit-taking from the stock markets to be ready for the IPO that will occur in the beginning of the coming November.
Regarding the DFMGI, it seems before starting the current week trading activities’ that it will start correctional phase and to reach between 3,566-3,589 points, Aref concluded.
Translated by: Mohamed Hesham Azab
