By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are likely to rebound this week amid Emirati banks’ announcement of strong financial results for the first quarter of 2018, analysts told Mubasher.
The Dubai Financial Market (DFM) has closed last week down 1.27% at 3,042.82 points, while the Abu Dhabi Securities Market (ADX) dipped 0.2% to 4,697.23 points.
The indices of the UAE bourses have been saturated with sell-offs, economist and technical analyst Ibrahim Al-Failakawi said.
Accordingly, the local stock markets are expected to see some technical rebounds through some selective buying on stocks with good operations, he added.
Moreover, almost six banks have posted their Q1 profits, which are projected to support this anticipated rebound, Al-Failakawi indicated.
The DFMGI is likely to bounce to 3,000 points, but it may test 2,900 points if sell-offs increased, he highlighted.
Investors in the UAE’s twin bourses have been cautious and concerned over trading on stocks, especially after some companies announced restructuring and capital increase or cut plans, he noted.
Selling pressures in the stock markets grew over the past period due to political tensions in the region and the world, he said.
The DFMGI is forecast to recover and resume the bullish trend if it breaks above 3,300 points, the economist stressed.
The indices of the UAE bourses are expected to rebound provisionally ahead of the upcoming Islam's holy month of Ramadan, he projected.
Al-Failakawi remarked that all of the GCC stock markets in general are likely to see a sluggish performance during Ramadan.
Translated by: Mai Ezz El-Din
