The UAE stock markets are expected to marginally rise during Tuesday’s session after stocks reached attractive levels that may propel them to rebound, analysts told Mubasher.
By the end of Monday’s trading session, the Dubai Financial Market (DFM) shed 0.29%, whereas the Abu Dhabi Securities Exchange (ADX) edged up 0.21%.
Current weak performance
The DFM started March trading at 3,209 points after declining 4.43% in February, NamaaZone CEO Iyad Aref told Mubasher.
The firm’s financial results for 2017 were weak which led to the current decline in the stock markets, Aref added, noting that these results affected investors’ decisions.
About 56 companies reported losses, whereas 67 firms posted profits in 2017.
Meanwhile, the DFM is currently suffering from low liquidity.
The deposits official index affirms the existence of heavy liquidity, whereas lack of trust adversely affects traders’ decisions.
The domination of individual portfolios on investments compared to their institutional peers is one of the hurdles in the Emirati stock markets,
Positive outlook for bourses
Aref stressed that outlook for the UAE stock markets is still optimistic, as the DFM may rise to 4,750 points over the coming period.
Distributing cash dividends for shareholders in the coming days may push up the UAE stock markets, the financial analyst at Mena Corp Issam Kassabieh told Mubasher.
One of the catalysts that led investors to acquire new positions for Emaar Properties’ stock is specifying the date of annual distributions, Kassabieh added.
By the end of Monday activities, the real estate sector on the DFM grew 0.5% as Emaar Development’s stock rose 2.5% to AED 5.39, while Emaar Malls and Emaar Properties gained 1.37% to AED 2.2 and 0.5% to AED 5.88, respectively.