By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to maintain the bullish trend over the second week of 2018 after the New Year’s holiday.
Over the past three trading sessions, the Abu Dhabi General Index (ADI) jumped 3.4% at a turnover of AED 13 billion, while the Dubai Financial Market general index (DFMGI) rose 2.7% at a turnover of AED 8.6 billion.
Upward trajectory
The UAE bourses saw the strongest pace since the fourth quarter of 2017 over the last three sessions on the back of the relative improvement in liquidity ratios as foreign investors were mostly buyers, technical analyst at the African Economic Council Mona Mostafa told Mubasher.
Foreign buying on the Abu Dhabi Securities Market (ADX) and the Dubai Financial Market (DFM) reached about AED 853.32 million in the first week of 2018, versus selling of AED 690.75 million.
The improved performance of the indices will boost the positive forecasts which coincide with the announcement of firms’ financial statements, Mostafa said.
The ADX closed at 4,548 points amid clear purchasing momentum, which has been reflected on blue chips, including the banks and telecommunications sectors’ stocks, she noted.
Unlike the ADX, the DFM has not seen a rebound despite the powerful upward wave it faced to close at 3,463 points, she added.
Turnovers are still somehow low in spite of the anticipated recovery of the stock markets over the coming period in line with the indices surpassing significant levels.
Boosting optimism
The indices of the UAE stock markets are likely to carry on the positive performance over this week’s trading session after the New Year’s holiday, which will contribute to boosting liquidity, Mostafa forecast.
The completion of the New Year’s holiday will boost traders’ optimism over the first sessions of this week and will push indices towards more significant levels, she added.
The DFMGI has resistance at 3,500 and 3,560 points, while it has support at 3,400 and 3,360 points, the analyst highlighted, adding that the ADI has resistance at 4,600 and 4,650 points and support at 4,480 and 4420 points.
Translated by: Mai Ezz El-Din
