UAE stocks to extend gains on Cabinet decisions

Dubai – Mubasher: The UAE stock markets are likely to extend gains on Tuesday following Cabinet’s recent decisions, analysts told Mubasher.

On Sunday, the UAE Cabinet, headed by vice president and ruler of Dubai Mohammed bin Rashid Al Maktoum, announced a new long-term visa to some international investors and talented professionals, allowing 100% foreign ownership in companies.

By the end of Monday’s trading session, the Dubai Financial Market (DFM) added 0.97% to 2,947.08 points, while the Abu Dhabi Securities Exchange (ADX) levelled up 0.73% to 4,458.33 points.

The UAE bourses are likely to see a positive performance in the coming period on the back of the Cabinet’s recent decisions, which will help attract further foreign investment, CEO of NamaaZone Iyad Aref said.

Aref indicated that the local bourses will maintain rising if liquidity level remains above AED 500 million amid selective buying on operative stocks with strong quarterly earnings.

The recent changes made by the Cabinet have been an important step that impacted trading volume on Monday, he emphasised.

Selective buying was mainly conducted on blue-chip stocks yesterday, mainly of the real estate and banks sectors, he highlighted.

For his part, senior financial analyst at Menacorp Financial Services Issam Kassabieh said that the UAE’s twin bourses are currently moving in an upward trajectory following the Cabinet’s latest regulations.

These decisions will boost profits of the bank and real estate firms, he noted, pointing out that they will pave the way for investment companies to boost their business.

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