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UAE, GCC equity markets set to trade in positive territory this week

Waheed Abbas/Dubai
Filed on August 30, 2021
The Dubai Financial Market General Index closed at 2,899.84 points on Monday, down 0.04 per cent. — File photo

(FAKHARNG)

Stock markets across the region will also be supported by crude prices as hurricane Ida turns into a category 4 hurricane and hits oil-producing regions in the US


Equity markets in the UAE and other GCC markets are likely to trade in positive territory this week ahead of the Opec meeting as well as support by a rise in crude prices after hurricane Ida, the US Fed chief’s hint that the central bank will not taper its asset purchase programme soon and ease of Covid-19 restrictions.

Wael Makarem, senior market strategist at Exness, said the Dubai Financial Market should see some progress as the local economy receives a boost from the travel restrictions drop for vaccinated people.

“Various economic sectors are likely to profit from this most welcome change and in particular the tourism sector which should benefit from additional international traffic. The main index will remain in a positive trend, although it has become overstretched and could enter a price correction as traders close their positions to secure their gains,’ said Makarem.

The Dubai Financial Market General Index closed at 2,899.84 points on Monday, down 0.04 per cent. While Abu Dhabi Securities Exchange (ADX) closed 0.43 per cent up at 7,684.87 points on Monday. Abu Dhabi bourse was the best performing market in the GCC as well as globally this year with a gain of 45 per cent during the January-July 2021 period.

“The DFM stock could see some positive price developments in September as investors anticipate improved revenue levels that will result from its decision to extend trading hours. The change will help attract more international investors and draw new capital to the market, which should prop up other stocks as well. The increased trading volumes will contribute to raising the exchange’s bottom line by generating increased trading fees,” he added.

Makarem noted that Emaar Properties stock price should see further gains in the coming weeks to months as the real estate market continues to improve in Dubai and elsewhere. “The real estate sector has recovered beyond last year’s levels and is expected to keep recovering. As a result, Emaar’s figures are expected to strengthen in the second half of the year, with higher revenue and larger net profits,” he added.

He said stock markets across the region will also be supported by crude prices as hurricane Ida turns into a category 4 hurricane and hits oil-producing regions in the US, provoking output disruptions. In addition, Opec is also expected to meet during the week to discuss its output plan as oil prices continue to rebound.

— waheedabbas@khaleejtimes.com





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