By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are forecast to continue profit taking movement during Thursday’s session, until the emergence of new market-moving catalysts and purchasing power on leading stocks, analysts told Mubasher.
On Wednesday, the Dubai Financial Market General Index (DFMGI) levelled down 0.44%, while the Abu Dhabi Securities Exchange (ADX) shed 0.35%.
UAE bourses to recover soon
The UAE's two bourses are currently witnessing a projected profit-taking trend that does not reflect that there is selling on stocks, NamaaZone CEO Iyad Aref told Mubasher.
The Emirati stock markets will rebound over the coming period, Aref added, noting that the DFM has hit a record high after rising to 3,541 points during the previous week from 3,325 points.
Emaar Properties’ exceptional distributions led to profit taking that pushed the DFMGI to close Wednesday at 3,463 points, Aref cited.
The outlook for the UAE's bourses is positive, he added, ascribing the current declines to profit taking.
The CEO said that the levels between 3,430 and 3,405 points are deemed good position for the DFMGI, explaining that the DFM targets to hover over 3,700 points in the coming period.
Most of stocks are in strong positions to buy, especially the blue-chip stocks, amid the anticipated disclosures of the listed firms.
The rebound of the indices in the coming period is contingent upon the hike of purchasing power from the local and foreign institutions.
Companies' disclosures
The UAE stock markets are anticipating further firms to announce their financial results, Mohab Maher, senior sales trader at Mubasher Financial Services (MFS) said.
The companies' disclosures are forecast to impact positively on the bourses, especially banks’ results, Maher added, indicating that banks’ distributions are projected to be high.
Translated by: Mohamed Hesham Azab
