By: Mahmoud Gamal

Dubai – Mubasher: Foreign investments in the UAE stock markets increased recently amid optimism over the accelerating economic growth of the country, as well as the positive expectations of listed-firms financial results, analysts told Mubasher.

Despite both the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) closed Sunday’s trading session down 0.29% and 0.53%, respectively, foreign and Arab investors were net buyers with around AED 29.7 million.

By the end of last week, Arab and foreign investors inclined toward buying with total investments worth AED 105.3 million.

Optimist investors

Investors in the UAE’s twin bourses are mostly optimists, which pushed the indices of both markets to test significant resistance levels, managing director of asset management at Menacorp Tariq Qaqish said.

The local bourses have succeeded in attracting further foreign investments and change their financial positions to get ready for quarterly results disclosures and annual cash dividend distributions, Qaqish stressed.

He indicated that the official comments recently announced by the Central Bank of the UAE regarding the country’s economy have played a vital role in attracting foreign investors.

The central bank’s announcement of positive growth rates will maintain the sustainability of government spending that contributes to most of the economic sectors, he explained.

He expected the local bourses to see further purchasing powers over the coming trading session, particularly the UAE stocks that hit record highs.

The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2018), currently being held in Abu Dhabi, will lure many foreign investors to the ADX, mainly the energy sector, Qaqish said.

Translated by: Mai Ezz El-Din