5 factors to restore investor confidence to UAE bourses Analysts

Dubai: Analysts have set five the main factors to restore investors’ confidence in the UAE bourses, including the first half of 2018 financial results, in addition to higher liquidity ratios and rising local gains.

By the end of Sunday’s trading session, the Dubai Financial Market’s (DFM) general index edged up 0.17% to 2,885.35 points, while the Abu Dhabi Exchange’s (ADX) general index added 0.27% to 4,615.46 points.

Expectations

Profits of seven UAE listed firms are expected to grow, including Emirates NBD, which profits are projected to rise by 14% to AED 2,312 million, according to a recent report by Bahrain-based SICO Investment Bank.

Moreover, profits of Abu Dhabi Commercial Bank (ADCB) are projected to rise by 11% to AED 1,117 million, while and Dubai Islamic Bank’s (DIB) profits are expected to rise by 6% to AED 1,117 million.

The report also forecast that Emaar Malls’ profits will increase by 19% to AED 575 million, Etisalat’s profits to grow by 17% to AED 2,303 million, Aramex’s profits to rise by 13%, and Emaar Properties’ profits to increase by 1% to AED 1,472 million.

Anticipation

The UAE stock markets await for major companies’ disclosures after overcoming the claims of The Abraaj Group crisis, vice president of Investment Research at KAMCO Raed Diab said.

Liquidity ratios in the local markets are likely to recover, particularly after most of stocks’ prices have hit significant purchasing levels, Diab projected.

The DFMGI may test 2,950 and 3,000 points as it broke 2,877 points, he highlighted, pointing out that the ADX’s general index must surpass 4,620 points to resume the upward trend towards 4,745 points.

Translated by: Mai Ezz El-Din