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UAE markets expected to rise as New Year approaches

UAE markets expected to rise as New Year approaches

 

Dubai – Mubasher: UAE markets have succeeded in breaking free from the oil-price-grip for the first time, analysts told Mubasher, adding that it is expected that local markets will continue their gains amid fears that traders, particularly foreign and Arab investors, will seek to cut on their financial positions with closeness of the New Year holidays.

The main index of the Abu Dhabi Securities Exchange (ADX) succeeded in rising on Wednesday, resuming its gains which commenced earlier this week, but which had been halted for two successive sessions. Similarly, the Dubai Financial Market (DFM) resumed gains after a one-session decline on profit-taking.

Aldar Securities General Manager Kefah Moharama told Mubasher in a comment that he expects this positive performance to continue in UAE markets in the coming period amid positive expectations for companies’ financials and high dividend distributions.

UAE markets have seen buying of ‘selected stocks’ following the state of uncertainty that had controlled traders previously, he highlighted, adding that markets are in a phase of ‘restoring confidence’ at present amid a positive atmosphere with the approach of the New Year.

On his part, UAE market analyst Wadah Taha said that the markets saw strong buying on several major stocks following some profit-taking after the sharp declines seen on the market.

However, it is worth noting that UAE markets are beginning to break free from the grip by oil prices, he said, adding that despite Brent oil contracts declining to $61 per barrel, markets continued rising, maintaining their morning gains.

There is still a probability that the markets will retreat amid the price fluctuations seen, Taha highlighted, adding that there are no incentives to support the markets at present except the speculative behaviour carried out by many Emirati investors, which prompted foreign selling added to the approach of the New Year and Christmas holidays.

 

 

Photo Credit: Arabianeye-Reuters