By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are likely to continue rising on Monday amid an increase in selective buying on blue-chip stocks, following the geopolitical tensions in the region, analysts told Mubasher.
The recent announcement of the UAE Vice President and Prime Minister Mohammed bin Rashid Al Maktoum of launching new incentives and facilities for investors in Dubai is also expected to positively impact the UAE’s twin bourses, analysts added.
By the end of Sunday’s trading session, the Dubai Financial Market’s (DFM) general index jumped 1.83% to 3,150.93 points, while the Abu Dhabi Securities Market’s (ADX) general index rose 1% to 4,699.43 points.
The UAE bourses have seen unjustified prolonged downturns over the past period, CEO of NamaaZone Iyad Aref told Mubasher.
The DFM was already expected to snap a five-session winning streak, closing yesterday above 3,150 points, which could make investors regain their confidence in the market as trading volume is still weak, Aref indicated.
The DFMGI is moving upwardly to test resistance at 3,225 points, he said, pointing out that the index may break above the aforementioned point and test 3,545 points.
Aref noted that the DFM is projected to see a positive performance in general, especially after closing Sunday’s trading session above main support at 3,081 points.
For his part, senior sales trader at Mubasher Financial Services (MFS) Mohab Maher said that the UAE bourses are likely to witness more buying powers on the back of firms’ significant operational basis and cash dividends.
Investors are optimistic about companies’ quarterly financial results, he stressed, adding that Dubai Islamic Bank (DIB) will announce its financial results next Wednesday.
Maher noted that the UAE stock markets have already overcome the hardest stage technically in the meantime.
Translated by: Mai Ezz El-Din
