By: Mahmoud Gamal

Dubai – Mubasher: Local and foreign institutional investors are widening their purchases on the UAE stock markets’ stocks that hit attractive levels, in line with benefiting from the generous cash dividend distributions, analysts told Mubasher.

By the end of Wednesday’s trading session, the Dubai Financial Market’s (DFM) general index added 0.47%, and the Abu Dhabi Securities Market (ADX) inched up 0.13%.

Most investors are inclining to trade on the real estate and banks sectors’ stocks with significant earnings, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.

Investors have a chance to offset the losses they have recorded over the past period amid positive projections of the upcoming season of firms’ cash dividend distributions, Kassabieh added.

News of the leading companies are guiding the Emirati bourses performance, he noted, pointing out that GFH Financial Group’s stock rose yesterday as its board member Jassim Alseddiqi retracted his resignation.

GFH Financial’s stock closed Wednesday up 2.54% to AED 1.31 at a turnover of AED 52.1 million.

He also said that Abu Dhabi National Energy's (TAQA) stock rose on Wednesday as investors centralised the stock due to their concern over Dana Gas’ sukuk case.

Liquidity ratios are still thin, in spite of institutional investors’ tendency to trade on luring stocks, he highlighted.

Kassabieh attributed weak liquidity ratios to some of the regulations that some banks and firms intend to implement over the coming period, such as Dubai Islamic Bank (DIB) which is planning to boost its capital.

Translated by: Mai Ezz El-Din