The performance of the UAE stock markets is likely to recover in the coming period on the back of the overall positive expectations regarding the national economy and the financial results of listed firms.
The UAE stocks are expected to attract further institutional and retail investors in the next weeks to benefit from their attractive price levels, analysts told Mubasher.
The UAE’s twin bourses, mainly the Dubai Financial Market (DFM), have closed last week and Sunday’s trading session in red in line with the global stock markets plunge, head of asset management at MENACORP Tariq Qaqish said.
Despite the downward trend seen by the global markets, the local stocks are projected to lure the largest stake of foreign investments in the region as they hit attractive levels, as well as the accelerating national economy, Qaqish added.
He also pointed out that foreign investments in the local markets mostly depends on the stable geopolitical scene in the region.
The hike in oil prices that coincides with the US sanctions on Iran coming into effect to halt the country from selling oil, in addition to the consecutive announcements of quarterly results and solid evaluations of most of the listed-firms, will boost investors’ optimism over the coming period, he highlighted.
He projected that local and foreign institutional investors, who seek to build new purchasing positions in the UAE markets in the medium-term, are likely to pump the largest stake of liquidity into the markets over the coming period.
For his part, CEO of MindCraft Consultants Fadi Al Ghattis said that the UAE bourses will maintain the cautious performance on Monday amid investor anticipation for the global markets’ performance, particularly the US stock market.
He also expected the local markets to see gradual rising next week as trading volume are likely to increase on the back of stocks that provide great investment opportunities.
Institutional investments in the UAE markets, mainly foreign investments, are likely to increase in the stocks that posted robust earnings for the third quarter of this year and are expected to report solid results by the end of the year and announce strong dividends, Al Ghattis said.
The indices of the local bourses may positively respond to the anticipated quarterly and interim financial results of Emaar Properties and its subsidiaries over the coming period, he added.
He stressed that price/earnings ratio at the UAE stocks are still low which make them attractive and different from the US stocks that their price/earnings ratios reached high levels and need for a strong correction. EGX70 index added 0.05% to 668.84 points, whereas the broader EGX100 index inched up 0.04% to 1,678.98 points.