By: Mahmoud Gamal
Dubai – Mubasher: UAE stock market movement is unclear for Tuesday, due to selling and purchasing, as investors await the disclosure of the remaining companies’ financial results and the initial public offering (IPO) of Emaar Development, analysts told Mubasher.
On Monday, the Dubai Financial Market general index (DFMGI) shed 0.3% to reach 3,629.86 points, while the Abu Dhabi Securities Exchange (ADX) inched down 0.14%, closing at 4,456.65 points.
Emaar Development will implement an IPO for a 20% stake, which makes up 800 million shares, starting 2 November, with the retail investors tranche ending on 13 November and the institutional investors' tranche ending on 15 November.
The DFMGI is currently moving between 3,550 and 3,680 points, UAE market analyst Mohanad Oraykat told Mubasher.
If it maintains its position above 3,620 points, the DFMGI will recover its positive trend, Oraykat added, noting that if the index drops below 3,620 points, this may lead the index to decline to 3,550 points once more.
Meanwhile, market analyst Gamal Abdel Hameed said the DFM saw strong selling during Monday’s trading session due to the decrease in the stocks of Emaar Properties and Dubai Investments.
On Monday, Emaar Properties’ stock fell 1.4% while Dubai Investments’ stock shed 0.4% before the companies announced their financial results for the third quarter for 2017.
The decrease in the DFM is attributed to banks and brokerages closing the margin selling which resulted in weak liquidity, Abdel Hameed added.
The DFMGI is expected to maintain its bottom level of 3,603 points, the analyst said, forecasting that the index will likely exceed 3,637 to 3,650 points to continue rising towards 3,681 points.
The DFM may see strong support during the coming sessions, backed by the positive trading on Emirates NBD’s stock after achieving strong financial results in Q3-17.
Emirates NBD’s profits surged 37% to reach AED 2.27 billion in Q3-17, compared to AED 1.66 billion in the year-ago period.
After Emaar Properties’ stock successfully maintained its position above AED 8.27 by the end of Monday’s trading session, it may try to reach AED 8.58 again, Abdel Hameed concluded.
Translated by: Mohamed Hesham Azab
