By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to maintain the bull run on Thursday amid selective buying on blue-chip stocks, following the strategic alliance between Emaar Properties and Aldar Properties, analysts told Mubasher.
By the end of Wednesday’s trading session, the Dubai Financial Market (DFM) edged up to 3,206.70 points, and the Abu Dhabi Securities Market (ADX) added 0.91% to 4,566.66 points.
On Tuesday, Emaar Properties and Aldar Properties have signed an agreement to develop local and global projects valued at AED 30 billion ($8.2 billion).
The UAE bourses have a technical ability to rise amid expectations of thriving projects in the country following the historic partnership between Emaar and Aldar, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.
The local stock markets are likely to hit significant levels after seeing a bearish trend they have not witnessed for years, he stressed.
Emirati real estate firms have announced new projects and contracts, topped by Arabtec Holding’s announcement of a new contract today, will bolster the local bourses, he indicated.
Shareholders of Aldar Properties have approved on Wednesday to raise foreign ownership of the company, which will lure new investments to the stock and make it financially stronger than before, Kassabieh noted.
Aldar also revealed at the general meeting yesterday their intentions to expand in the region, particularly in Egypt, in collaboration with Emaar, which will make investors optimistic over investing into these stocks and into the UAE bourses in general, he said.
Foreign investors’ trades onto the indices and stocks of the local stock markets are projected to increase over the coming sessions, he added.
Technical Vision
For his part, market analyst Jamal Abdul Hamid said that the DFMGI will remain stable between 3,150 and 3,125 points.
Traders are anticipating the DFMGI to break above the levels of 3,203 to 3,220 points to carry on rising to 3,397 points, Abdul Hamid highlighted.
Translated by: Mai Ezz El-Din
