By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are likely to hit record highs on Wednesday and Thursday after snapping a three-session winning streak, backed by the UAE Cabinet's recent decisions.
On Sunday, the UAE Cabinet, headed by vice president and ruler of Dubai Mohammed bin Rashid Al Maktoum, announced a new long-term visa to some international investors and talented professionals, allowing 100% foreign ownership in companies.
By the end of Tuesday’s trading session, the Dubai Financial Market (DFM) rose 0.88% to 2,973.1 points, while the Abu Dhabi Securities Exchange (ADX) jumped 1.53% to 4,526.61 points.
The UAE stock markets have started the Islamic holy month of Ramadan in red territory, but they have changed the downward trajectory to rise remarkably on Monday and Tuesday on the back of the Cabinet’s recent decisions, market analyst Ahmed Sobha told Mubasher.
These regulations have notably boosted liquidity ratios in the local bourses, Sobha added.
The DFM and the ADX have risen by about 2% each in the two last days near main resistance levels, he said.
The UAE’s twin bourses are likely to maintain the bull run, in line with seeing selective buying and investors’ optimism, which will enhance the performance of the markets in the coming period, he forecast.
For his part, senior financial analyst at Menacorp Financial Services Issam Kassabieh said that the UAE stock markets have revived during the last two sessions following the Cabinet’s latest regulations.
Accordingly, the banks and real estate firms are expected to attract further investors, he indicated.
These decisions will boost profits of the banks and real estate firms, Kassabieh noted, pointing out that they will pave the way for investment companies to grow business.
Translated by: Mai Ezz El-Din
