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UAE bourse make ready for new wave of gains – Analysts

UAE bourse make ready for new wave of gains – Analysts
UAE stock markets are expected to see a new wave of gains this week

By: Mahmoud Gamal

Dubai – Mubasher: UAE stock markets are expected to see a new wave of gains this week, analysts told Mubasher, forecasting increased selective purchases after recent decisions taken by the UAE government along with a bundle of economic incentives that have raised foreign investors’ ownership in companies to 100%.

The UAE Cabinet, chaired by UAE vice president and prime minister and Dubai Ruler Sheikh Mohamed bin Rashed Al Maktoum, last week launched an integrated bundle of entry visas with the aim of attracting qualified talents in all of the UAE economy’s vital sectors. The government also said it will allow foreign and international investors to own 100% of their companies and joint ventures.

By the end of the last week, the Dubai Financial Market (DFM) grew 1.3% to close at 2,954 points, while the Abu Dhabi Securities Exchange’s (ADX) main index jumped 3.8% to 4,601 points. 

The UAE government’s recent decisions have resulted in the best weekly performance for the country’s twin markets in over a month, commented Raed Diab, head of research at KAMCO, noting that these decisions will attract more foreign inflows, which in turn will support companies’ performances and financial results in the coming period.

The analyst forecast that stocks would extend their gains this week.

From a technical perspective, Diab expects the DFM to stabilise at current levels, while also attempting to break through the 3,000-point level and reach 3,065 then 3,150 points.

As for the ADX’s general index, which found support near 4,415 points, the analyst said it should find rising momentum in the coming period and attempt to break above 4,630 and 4,720 points.

Meanwhile, Fadi El-Ghattis, CEO of Minecraft Consultants, told Mubasher that oil prices averaging at high levels will help support UAE indices on the short term.

He concurred with Diab as to the UAE government’s recent decisions, which have supported and will continue to support investor confidence and the general investment atmosphere.

Liquidity will remain a major challenge for UAE bourses, which are looking to exceed certain support levels, El-Ghattis highlighted.

 

Translated by: Nada Adel Sobhi