By: Mahmoud Gamal
Dubai – Mubasher: UAE stocks are expected to resume their gains and overall market activity in the coming period as companies close in on the end of the third quarter financials period, which have been positive so far, particularly for banks.
Moreover, global institutions believe the UAE economy will see strong growth as geopolitical tensions stabilise, analysts told Mubasher.
The Dubai Financial Market (DFM) closed Wednesday in the green, adding 0.48% to 2,829.23 points, while the Abu Dhabi Securities Exchange (ADX) grew 0.25% to 5,016.07 points.
Raed Diab, head of investment research at KAMCO, expects the DFM to continue its positive performance in the coming period after the positive results posted by DFM-listed companies especially banks.
Many stocks have fallen to attractively low levels, which would allow investors to begin building new positions, Diab told Mubasher, adding that among the forecasted reasons for the rise is the recent decrees enacted by the UAE government, which are likely to attract investors and liquidity to the markets.
Last week, UAE President Khalifa bin Zayed Al Nahyan issued seven federal decrees, the most important of which was a decree on foreign direct investment (FDI), which seeks to bolster investment both on the regional and global levels.
The analyst further noted that dampening tensions from trade disputes between China and the US. He added that the remaining companies which have yet to disclose their results may have an impact on the market.
From a technical perspective, if the DFM remains above 2,800 points, then it is expected that the DFM’s next target would be 2,853 then 2,925 points, Diab said, noting that there may be declines along the way but they will not be severe.
As for the ADX’s general index, the analyst said that the market needs to a strong close above resistance at 5,040 points, while second resistance would be at 5,255 points. Support will be seen at 4,835 points, Diab went on, explaining that a fall below that level will begin a correction towards 4,740 points.
Translated by: Nada Adel Sobhi
