Dubai: The UAE stock markets are likely to extend gains this week in line with listed-firms’ positive earning statements for the third quarter.
By the end of Monday, the Dubai Financial Market (DFM) edged up 0.44% to 2,747 points, whereas the Abu Dhabi Securities Exchange (ADX) added 0.3% to 4,956 points.
The positive evaluations for most listed-firms distinguish the UAE stocks from the GCC peers, head of asset management at MENACORP Tariq Qaqish told Mubasher.
The UAE economic growth is expected to rise by 2.9% in 2018 and by 3.7% in 2019, which will boost the local bourses and make it more attractive for investors, Qaqish said.
The recent hike in oil prices is one of the main factors that improved most of the listed-firms’ quarterly financial results, he indicated.
He added that the robust third-quarter results of listed-banks will attract investors to the UAE stocks.
Despite the price declines in the real estate sector, sales have remarkably increased as listed-developers are keen to deliver their projects on time, which positively impact the sector’s earnings, Qaqish stressed.
He further noted that activating the procedures for the companies contributing to the market, which its accumulated losses accounted for more than 30% of its capital, will boost investor confidence.
For his part, Ehab Rashad, CEO of Al Safwa Mubasher Financial Services (MFS), said that the positive performance of some stocks will pave the way for further liquidity in the Emirati equity markets.
He also emphasised that the initiative of Emaar Development to distribute special dividends will pump liquidity into the stock.
Moreover, Emirates Integrated Telecommunications Co (DU) and Emirates Telecommunications Group (Etisalat) are seeking to offer the 5G services and activate the smart SIM card that will raise the telecom sector’s profits, Rashad pointed out.
The UAE’s twin bourses are still awaiting a government support represented in new liquidity or new public offerings that in return would lure investments, he added.
The CEO of MFS projected that most of foreign investors will trade on blue-chip stocks with solid earnings and strong operations in the coming period.
Translated by: Mai Ezz El-Din