By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to resume the upward trend this week to recover temporarily as some companies have uncovered their exposure to the Abraaj Group crisis.
By the end of Sunday’s trading session, the Dubai Financial Market’s (DFM) general index jumped 1.5% to 2,864.42 points, and the Abu Dhabi Securities Exchange’s (ADX) general index rose 1.34% to 4,621.15 points.
Improved prices
The UAE equity markets have performed positively over the last trading session amid the improved prices of blue-chip stocks, director of Al Sharhan Shares Centre Jamal Ajaj said. The indices of the local markets are likely to resume the bull run this week, he indicated.
He attributed the recent upward trend to the VIP traders’ investment in the twin UAE bourses following the unreasonable decline in the prices of stocks and the few recently announced ties to the Abraaj Group crisis.
Ajaj stressed that both markets have seen thin liquidity on Sunday’s trading session and they need for a stronger liquidity to carry on the bullish trend.
Robust fundamentals
For his part, managing director of asset management at Menacorp Tariq Qaqish said that the local bourses have been volatile over the past period despite the robust fundamentals of the UAE economy, as well as the positive catalysts related to the Cabinet’s recent decisions to boost foreign investments.
Although the UAE bourses have seen a bearish trend lately, we expect to see investors’ appetite increase due to attractive valuations supported by oil prices that are likely to remain stable at its current high levels in 2018, Qaqish added.
The markets are likely to move upward as the country’s economy is expected to continue to grow supported by a large number of infrastructure projects disclosed before the Dubai 2020 Expo.
Translated by: Mai Ezz El-Din
