By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to revive over the coming period and achieve strong gains in the first quarter of 2018 as they shrugged off the Emirati firms’ financials in the latest trading sessions, analysts told Mubasher.
Some companies have decided to restructure capital in a bid to narrow losses, such as Marka Holding and Gulf General Investment Co (GGICO), which have negatively impacted the Dubai Financial Market (DFM), analysts added.
By the end of April, the DFM fell 42.57 points, or 1.37%, at 3,065.96 points, logging three-month losing streak, while the Abu Dhabi Securities Market (ADX) rose 84.12 points, or 1.83%, closing the month at 4,669.52 points.
Most of the UAE leading companies have reported solid results for 2017, while some others have posted encouraging results in Q1-18, managing director of asset management at Menacorp Tariq Qaqish said.
Some of the negative news are still affecting investors in the local bourses, particularly capital restructuring of some firms, topped by Marka whose accumulated losses have reached AED 450 million, against AED 500 million in capital, Qaqish indicated.
He remarked that Drake and Scull international’s (DSI) stock has been falling recently as the company is planning to restructure its capital, and same goes for DXB Entertainments.
The DFM needs to be controlled strictly, as some companies on the edge of bankruptcy, Qaqish noted.
Meanwhile, the ADX was mostly bolstered by the banks sector last month, as well as TAQA’s stock which achieved strong gains in April, and new market-boosting catalysts that were a bright spot for investors, vice president of Investment Research at KAMCO Raed Diab highlighted.
Translated by: Mai Ezz El-Din
