By: Mahmoud Gamal

Dubai – Mubasher: UAE bourses are forecast to perform well this week amid projections of positive financial results and news of new initial public offerings (IPOs), analysts told Mubasher early Sunday.

Last week, the Dubai Financial Market (DFM) closed in the green on the back of blue chips, while the Abu Dhabi Securities Exchange (ADX) ended on a low note.

UAE stock markets are likely to see new gains this week amid positive news and projections regarding Emaar Development's upcoming IPO, Fadi El-Ghattis, CEO of MindCraft Consultants, told Mubasher.

On Saturday, Emaar Properties’ shareholders approved offering 30% of the company’s subsidiary, Emaar Development, for subscription via the DFM.

Emaar Development’s IPO will no doubt restore the liquidity to the UAE markets, particularly the DFM, El-Ghattis noted, adding that recent positive results achieved by banks will also contribute to raising turnover.

Six banks listed across the UAE’s two bourses achieved a combined profit of AED 2.31 billion in the first nine months of 2017, up 15% year-on-year from AED 2.01 billion, according to data compiled by Mubasher.

Analyst Razan Shahwan concurred with El-Ghattis that the IPO of Emaar’s unit will boost turnover on Sunday, indicating the DFM was set to test resistance at 3,661 points, a rise above which will prompt further rises towards 3,738 points.

Meanwhile, Hesham Hassan, head of technical analysis at Acumen Securities, commented that UAE markets were still moving sideways.

The DFM is moving between 3,575 and 3,675 points, the analyst noted, indicating that the ADX benchmark index was moving around 4,500, and stability above that level would boost it towards 4,560 points.

Translated by: Nada Adel Sobhi