Dubai – Mubasher: UAE bourses and stocks are expected to see major buying this week, having fallen to attractive price levels following the wave of declines they suffered last week on the back of a heightened trade war between the US and China, analysts told Mubasher.
By the end of last week, the Dubai Financial Market (DFM) retreated 3.62% to 2,928.17 points, falling below the 3,000-point mark, while the Abu Dhabi Securities Exchange (ADX) dropped 3.81% to 4,535.26 points.
UAE stock markets will likely see new buying momentum this week, led by portfolios, after stocks fell to attractive levels on the back of concerns pertaining to the US-China trade war, Iyad Aref, CEO at NamaaZone said.
He added that bourses were awaiting incentives such as companies’ first six months results, which are expected to be positive this year.
Similarly, Issam Kassabieh, senior financial analyst at MenaCorp, agreed with these forecasts, noting that UAE stocks’ expected gains were likely to be backed by the recent disclosures, required by the UAE’s Securities and Commodities Authority (SCA), pertaining to companies’ ties and business deals with the Abraaj Group, which has been recently embroiled in allegations of money misuse.
On 14 June, the Abraaj Group said it was planning to file for liquidation, and its request was approved last week by a Cayman Islands court. The liquidation will be a court-supervised restructuring and will ensure the protection of stakeholders’ rights, the Dubai-based investment firm had said.
Kassabieh further expected blue chips such as Emaar Properties, Dubai Islamic Bank (DIB), and Emirates NBD to lead the week’s gains.
Abu Dhabi’s banking sector is also forecast to see some positive movements this week as results for the second quarter and the first half of the year as a whole are projected to be positive, the analyst told Mubasher.
Translated by: Nada Adel Sobhi