By: Mahmoud Gamal

Dubai – Mubasher: UAE bourses are forecast to recover and rise this week after the period for disclosing financial results has ended, analysts told Mubasher early Sunday, noting that financial institutions will be looking to increase their positions in stocks which have fallen to attractive prices.

Last week, the Abu Dhabi Securities Exchange (ADX) closed down 0.48% to 4,577.42 points, while the Dubai Financial Market (DFM) shed 0.14% to end at 3,330.44 points.

Profits of 110 companies listed across the two UAE bourses logged a 52.8% profit surge, or AED 24.13 billion, to a combined AED 69.8 billion in 2017 from AED 45.67 billion in 2016, data compiled by Mubasher showed.

Major changes

UAE stock markets are likely to recover this week after the financial disclosure period has ended, commented capital market analyst Ines Mguidich, noting that bourses had gone in the red last week coinciding with the sharp drops seen in global, particularly US markets.

The disappointing financial results of several UAE companies also contributed to the declines, she added.

As for the DFM, the analyst noted that it was able to maintain its position above 3,330 points, although gains were limited.

The recent decline in blue-chip prices will provide a better opportunity for the market to rise on the short-term, Mguidich added.

Meanwhile, technical analyst at the African Economic Council Mona Mostafa noted that the DFM will see a rebound once buying picks up and as long as support is maintained at 3,312 and 3,279 points, while resistance will be seen at 3,367 and 3,407 points.

As for the ADX, Mostafa said that traders preferred to continue profit-taking last week following the sharp drop in global stocks.

Concerns were reflected on the relative strength index (RSI), which projects further losses at least in the early sessions of the week, the analyst said, indicating that the ADX bourse will trade between 4,538 and 4,490 points.

Translated by: Nada Adel Sobhi