By: Mahmoud Gamal
Dubai – Mubasher: Investors in the UAE’s stock markets are awaiting the emergence of new market-boosting incentives spearheaded by blue-chip companies’ financial disclosures, analysts told Mubasher.
They added that among the highly-anticipated disclosures are SHUAA Capital, Agility, Khaleeji Commercial Bank (KHCB), Air Arabia, Aldar Properties, and TAQA.
Last week, the Dubai Financial Market (DFM) gained 0.85% and closed at 2,973.94 points, whereas the Abu Dhabi Securities Exchange (ADX) fell 0.68% to 4,811.42 points.
Investment decisions
UAE bourses continue to suffer from low liquidity as many investors remain cautious, resulting in an overall negative impact on the markets, commented Jamal Ajaj, general manager of Al Sharhan Stock Center.
The positive results posted by several companies for the first half of 2018 were unable to bolster the market, thus prompting no major change in liquidity levels, he told Mubasher.
Meanwhile, technical analyst at the African Economic Council Mona Mostafa concurred that low liquidity was a problem preventing markets from rising, noting that this was despite some foreign and institutional buying.
The ADX entered into a sideways movement last week after nearing the 4,900-points level as leading stocks had performed until investors began their profit-taking, she explained.
Mostafa forecast that the ADX would see some positivity this week, which is likely to see an extension of the sideways trend with some attempts to surpass the resistance at 4,900 points.
As for the DFM, the analyst projected further positive movements and attempts to exceed the level of 3,000 points, which would confirm a correction as long as the levels of 2,800 to 2,900 points are maintained.
Translated by: Nada Adel Sobhi
