The UAE stock markets are likely to see further gains on Monday, particularly the Dubai Financial Market (DFM), to recover temporarily as financial results of blue chips continues, analysts told Mubasher.
By the end of Sunday’s trading session, the DFMGI edged up 0.13%, while the Abu Dhabi Securities Exchange’s (ADX) general index dipped 0.11% to 4,806.30 points.
The UAE’s twin bourses are currently stable and investors are anticipating further interim financial results of major firms, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.
Most investors are expecting Air Arabia to post its financial results this week to determine the impact of the Abraaj Group crisis on the airline and whether it will make provisions for exposure that exceeded AED 1 billion, Kassabieh noted.
He stressed that most of the current prices of stocks, mainly blue-chip stocks, are good for investments.
For his part, technical analyst Gamal Abdul Hamid said that the UAE markets are witnessing selective buying on blue-chip stocks that have not reported their financial results yet, topped by Arabtec Holding and some of the insurance sector’s stocks.
Abdul Hamid attributed thin liquidity in the local bourses to the annual holiday taken by many investors and traders, while anticipating further results.
The DFMGI may touch 3,109 points as it is moving above 2,957 points, the analyst highlighted, pointing out that the index could test 2,957 and 2,938 points if it sees a wave of profit-taking.