By: Mahmoud Gamal
Dubai – Mubasher: The UAE stock markets are expected to witness cautious trading in line with the approach of first-quarter financials, analysts told Mubasher.
Denying the merger between SHUAA Capital and GFH Financial Group will have a negative impact on the performance of banks and investment stocks throughout this week; thus, weighing on investors’ risk appetite, financial analyst Talal Al Kholi told Mubasher.
Mergers strengthen strong sectors like the banks and help them weather pressures amid global economic slowdown, Al Kholi added.
Negative outlook for first-quarter financials of UAE firms will push traders to be more cautious in the coming period, capital market analyst Amin Al Hennawy noted.
The decline of stocks in Q1-17 was mainly attributed to modest financial results reported by leading firms like Arabtec Holding, in addition to lower-than-expected dividends, Al Hennawy added.
Translated by: Julian Nabil
