By: Mahmoud Gamal
Dubai – Mubasher: Stocks on the UAE’s twin bourses have added around AED 7.16 billion ($1.95 billion) in market capitalisation in two sessions as indices grew to several-months’ record highs amid growing investor appetite as the annual financial disclosure period commences.
By the end of Monday’s session, the Dubai Financial Market (DFM) gained 1.23% or 31.30 points to close at 2,570.94 points, its highest level since 7 November 2018, backed by Dubai Investments, Dubai Islamic Bank (DIB), and Emaar Properties.
Meanwhile, the ADX increased 0.61% to close at 5,051.07 points on the back of First Abu Dhabi Bank (FAB), Etisalat, and Aldar Properties.
These gains came on the back of portfolios returning to the markets, especially those investing in blue chips that are known for their positive financial performance and high yields, analysts told Mubasher.
Bank’s positive annual guidance and projections, which confirm the strength of the UAE’s economy, have prompted some movement from investors, according to MenaCorp senior financial analyst Issam Kassabieh.
The banking sector is also on the lookout for the three-way potential merger of Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB), and Al Hilal Bank, Kassabieh told Mubasher, noting that if completed, this merger would confirm these three institutions’ combined strength.
It is likely that UAE bourses will continue to rise in the coming period, while maintaining a balanced performance, with various leading companies likely to register strong annual financial results, the analyst added.
Positive movement
Meanwhile, market analyst and former trading manager at Global for Bonds and Shares Ayman Al Qasaby noted that there was liquidity in the UAE’s two markets amid positive movements by UAE stocks, indicating that such liquidity was centred in companies whose stocks were known to be strong and achieve positive results.
Al Qasaby agreed with Kassabieh’s forecasts of further gains in the coming period.
Translated by: Nada Adel Sobhi
