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Attractive stock prices to boost UAE bourses - Analysts

Attractive stock prices to boost UAE bourses - Analysts
(Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal

Dubai – Mubasher: UAE stock markets are expected to continue their positive performance on Tuesday as foreign and institutional investors pump new liquidity after stocks reached attractive price levels, analysts told Mubasher.

Investors are also awaiting the announcement of companies’ new projects at Cityscape and the results of Arabtec’s shareholder meeting scheduled for later in the day, they added.

On Monday, the Abu Dhabi Securities Exchange (ADX) grew 1.23%, while the Dubai Financial Market (DFM) added 0.31%.

New liquidity is likely to continue coming into the UAE markets by institutional investors in the coming sessions, said market analyst Gamal Mosaed, noting that the prices of leading stocks have reached attractive levels ahead of these companies’ disclosures of first-quarter financials.

Results of Arabtec’s general meeting will strongly impact the DFM on Tuesday and for the remainder of the week, the analyst told Mubasher.

Arabtec’s stock gained 3.2% on Monday after the company appointed Peter Bullard as its new chief financial officer (CFO) to oversee its restructure programme.

Arabtec’s board will attempt to gain shareholder approval for a rights issue of AED 1.5 billion ($408 million).

Meanwhile, market analyst Badr Al Oteiby said he expects foreign portfolios to increase their stock positions in UAE markets, coinciding with a correction in US and European markets.

UAE markets are likely to rise once more as companies, particularly those in the real estate sector, announce new expansions and projects, he told Mubasher.

Among those companies is Eshraq Properties, the analyst said.

Mubadala, the Abu Dhabi government’s investment arm, recently announced plans to build a joint venture with loss-making Eshraq to develop land on Al Maryah Island.

The DFM is likely to move between 3,250 and 3,450 points in the coming sessions until investors calm down and global tensions ease or until new internal catalysts arise, Al Oteiby told Mubasher.

He expects the ADX to move between 4,250 and 4,300 points before rebounding towards 4,600 points on the short-term.

Translated by: Nada Adel Sobhi