The UAE stock markets are likely to recover in December following the country’s 47th National Day after recording over AED 22 billion in losses last November.
The local bourses will resume trading on Tuesday after being shut for two days on the occasion of the UAE National Day.
The UAE’s twin bourses are expected to perform positively this month, in line with the emergence of strong catalysts topped by the temporary US-China trade war truce, CEO of MindCraft Consultants Fadi Al Ghattis told Mubasher.
This news should encourage foreign investors to trade on stocks with solid interim financial results, Al Ghattis indicated.
The recent decisions taken by the UAE government on attracting foreign investments will positively impact the local stock markets in the medium term, he stressed.
He also projected that the markets will improve after the Organization of the Petroleum Exporting Countries (OPEC) and non-member countries reach a decision on oil production and its prices.
For his part, managing director of asset management at Menacorp Tariq Qaqish said that the UAE’s current economic situation has been a main factor to attract foreign investors.
Regulatory authorities of the local bourses are currently seeking to activate investment instruments, as it recently announced plans to launch real estate investment trusts (REITs), Qaqish highlighted.
He added that regulators are also looking to attract further listings to the local markets, pointing out they also seek to resume the sukuk and bonds activities.
He expected the UAE’s twin bourses to see further purchasing powers in the coming trading sessions.
The expected performance of the UAE stock markets is still unclear, vice president of Investment Research at KAMCO Raed Diab.
The third-quarter financial results are likely to maintain weighing on the real estate sector, Diab projected.
The Abu Dhabi Securities Exchange’s (ADX) general index has to surpass 4,740 points to limit risks of plunge and to target 5,150 points, he said.
He pointed out that the ADX may see further declines and move toward 4,800 points if it falls below 4,835 points.
As for the Dubai Financial Market (DFM), the general index is likely to test support at 2,590 points, the lowest level in 2016, which will push the index to record further gains, he added.