By: Mahmoud Gamal

Dubai – Mubasher: The UAE stock markets are likely to see further selective buying as banks’ financial results for the first half of 2018 beat estimates, as well as most listed-firms uncovered their exposure to The Abraaj Group crisis, analysts told Mubasher.

The Dubai Financial Market’s (DFM) general index closed last week up 1.45% at 2,926 points, and the Abu Dhabi Securities Exchange’s (ADX) general index finished the week up 1.7% at 4,770 points, its highest level since August 2015.

Selective buying

Selective buying are expected to target blue-chip stocks, as well as stocks of firms and banks that generated robust H1 financial results, CEO of Al Safwa Mubasher Financial Services Ehab Rashad projected.

The local bourses are likely to witness positions switching, particularly the banking sector’s stocks, which hit record highs last week as its H1 financial results beat estimates, Rasahd said.

Thin liquidity could carry on during the summer holiday, he noted, adding that it will remain as the most impacting factor in the UAE’s twin bourses.

Ehab indicated that the markets’ performance would improve gradually after the summer, especially when most stocks are traded at robust levels that make them attractive for buying by institutions, investment funds, and foreign investors.

Positive performance

For her part, technical analyst at the African Economic Council Mona Mostafa said that the performance of the UAE markets is positive since the beginning of this month, backed by H1 financial results.

The ADX’s general index is targeting 4,800 and 4,900 points till the end of July, Mostafa forecast.

The index could hit record highs by breaking the aforementioned levels, but it will retest 4,700 and 4,650 points in case it did not, she pointed out.

On the other hand, the DFMGI has resistance at 2,977 and 3,040 points, she highlighted, noting that the index would end the short-term correction movement by breaking these levels.

Translated by: Mai Ezz El-Din