By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are likely to see a sideways-to-rising performance during October as investors focus their attention on third quarter financial results, which they forecast to be strong, analysts told Mubasher.
The Dubai Financial Market (DFM) closed September in the red, falling 2.02% over the month, while the Abu Dhabi Securities Exchange (ADX) ended 1.6% down.
September’s declines, including the DFM’s drop to 3,563 points were anticipated, NamaaZone CEO Iyad Aref told Mubasher.
With the third quarter coming to a close, Aref believes that investors will be keeping a close eye on financial disclosures which often begin after 15 October and last for a month.
It is likely that UAE bourses will see an increase in turnover on selected stocks, which are projected to achieve strong financial results in Q3-17, the analyst noted.
He added that from a technical perspective, and despite the recent decline, the DFM is holding well and nearing the buying levels of 3,550 to 3,540 points.
In the event that stock collections continue, Aref forecast that the DFM will fall to 3,470, an important level to continue “investment purchases”, noting that the DFM’s blue chip stock Emaar Properties was nearing the buying level of AED 8.38, while Dubai Islamic Bank (DIB) was close to AED 6 to AED 6.03.
Meanwhile, Jamal Ajaj, general manager at Al Sharhan Stock Centre, said he expects the UAE’s stock markets to maintain their sideways trend in the first week of October due to no change in market conditions.
Some stocks may see varying performance as profit guidances emerge, he told Mubasher, highlighting that October was likely to be a better month than September in terms of trades, as the fiscal year is almost over.
Translated by: Nada Adel Sobhi
