By: Mahmoud Gamal
Dubai – Mubasher: Companies’ weak financial results, especially Deyaar Development’s and DAMAC Properties’, may prompt a negative trend on the UAE’s stock markets during Thursday’s trading session, analysts told Mubasher.
National Bank of Umm Al Qaiwain’s (NBQ) profits decreased 17.06% to reach AED 57.29 million in the third quarter of 2017, while DAMAC’s profits retreated 20.5% to AED 719.34 million, and Deyaar Development’s slid 41% reaching AED 100 million.
The results, which were announced during the last two days, do not indicate that the real estate sector’s collective results will be negative, Menacorp financial analyst Issam Kassabieh said, noting that they are forecast to be higher.
The high sales’ cost in Dubai impacted DAMAC’s and Deyaar Development’s results, despite the firms achievement of higher revenues, Kassabieh added.
The bourses’ liquidity may remain at its lower levels due to investors’ anticipation and caution after negative results of some listed firms, the analyst in Menacorp noted.
On Wednesday, Emaar Properties’ stock pushed the Dubai Financial Market (DFM) up, while the banks sector boosted the Abu Dhabi Securities Exchange (ADX).
UAE stock markets saw minor gains, despite the continued selling of some stocks, reflecting investors’ desire for profit-taking, technical analyst Jamal AbdulHamid told Mubasher.
Investor anticipation for the listed companies’ results alongside the weak results posted by some firms were the main reasons behind Wednesday’s selling, AbdulHamid added.
The DFM remaining above 3,600 points, in line with pumping new liquidity into stocks that reached cheap prices, especially the insurance sector’s, is a positive indicator, he added.
AbdulHamid forecast that the DFM will increase during the coming trading sessions to reach between 3,650 and 3,681 points. Exceeding these levels, the DFMGI will target 3,738 points.
Translated by: Mohamed Hesham Azab
