By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are forecast to see gains on the back of investor buying on Sunday amid positive expectations of company’s upcoming financial disclosures and anticipation of Emaar’s general meeting, analysts told Mubasher early Sunday.
At the closing of Thursday’s trading sessions, the Dubai Financial Market (DFM) ended at its highest level in three weeks, while the Abu Dhabi Securities Exchange (ADX) also ended on a positive note, backed by its blue chips.
Technically, UAE bourses are projected to record new highs this week despite investors’ anticipation of third-quarter and nine-month financial results, commented Eyad Arif, founder and CEO of Namaa Zone.
The DFM’s general index is expected to test 3,740 points on the short-term, the analyst told Mubasher, advising investors to be cautious over the next two weeks as companies begin their financial disclosures.
Investors should study the financial results of any company and its price before taking any “buy” decisions, Arif stressed.
However, the DFMGI may see a short-taking spree after nearing resistance between 3,667 and 3,680 points, the analyst said.
A fall to 3,600 points is “normal”, according to the analyst, who forecasts a second rise towards 3,740 points.
Recovery
Meanwhile, Eyad Al-Bareeqy, general manager at Al-Ansari Financial Services (AFS), noted that there were recovery indicators for the two UAE markets, which began when companies began reporting results.
Last week’s trades call for optimism, the analyst said, indicating the high levels of turnover and the change in traders’ behaviour and stronger investment appetite.
He expects this week’s trades to be even more positive amid indicators of further gains as stock prices have reached attractive levels.
It is worth noting that Emaar Properties’ general meeting is scheduled to meet on Sunday and discuss listing up to 30% of one of its subsidiaries on the DFM.
Positive results
Jamal Ajaj, general manager of Al Sharhan Stock Centre, expects positive results for many companies during Q3-17, which in turn will boost liquidity to record levels and prompt indices to rise higher and reach new technical levels.
Translated by: Nada Adel Sobhi
