By: Mahmoud Gamal
Dubai – Mubasher: UAE stock markets are expected to extend their gains on Wednesday as investors look to perform selective purchases on leading shares, analysts told Mubasher.
The Dubai Financial Market (DFM) closed Tuesday at a 1.2% rise to 3,411.17 points, while the Abu Dhabi Securities Exchange (ADX) gained 0.99% to end at 4,441.99 points.
UAE bourses will likely see strong and active trading in the coming sessions as indices are set to rise on the short-term, commented market analyst Ziad Al-Qamizi.
There are many technical opportunities in the market at present that will extend this positive performance, Al-Qamizi told Mubasher, indicating that one of the main market boosters is companies’ upcoming positive annual results.
The analyst further highlighted that the UAE banking sector’s results are forecast to be strong, while the telecommunications and real estate sectors were projected to remain stable.
Total profits for companies listed on the DFM and ADX registered a 15% increase in the third quarter of 2017 to a combined AED 18.75 billion from AED 16.27 billion in the year-ago period.
Profits of DFM-listed companies totalled AED 8.7 billion in the quarter from July to September, while ADX-listed ones logged AED 10.1 billion.
A new report by research firm EFG Hermes expected UAE banks to report positive results on the back of increasing their focus and spending on digital banking services.
Another main market driver in the coming period will be the announcement and distribution of annual dividends, Al-Qamizi further noted, indicating that statistics show that 40% of these forecast dividends will yield over 5% to investors.
Translated by: Nada Adel Sobhi
