By: Mahmoud Gamal
Dubai – Mubasher: UAE stock market indices are capable of rebounding higher in the coming sessions as stocks have fallen to significantly attractive prices, analysts told Mubasher.
The Dubai Financial Market (DFM) closed Sunday down 0.48%, while the Abu Dhabi Securities Exchange (ADX) shed 0.54%.
The recent announcement of Emaar Properties’ planned exceptional dividend distributions has been with investors’ ire, which has pressured the market over the course of last week, bringing it to Sunday’s low of 3,348 points, NamaaZone CEO Iyad Aref told Mubasher.
As for other stock prices, Aref noted that these have reached attractive levels that can attract investors to the market and allow them to build new positions.
Sunday’s low trading value and volume is a positive indicator that investors were not selling their stocks, the analyst added.
Turnover dropped to AED 181.07 million on the DFM on Sunday from AED 482.55 million on Thursday, while on the ADX turnover decreased to AED 26.68 million from AED 82.31 million, while ADX volumes fell to 22 million traded shares versus 55.14 million on Thursday.
The DFM is capable of rising above 3,700 in 2018, Aref added in a comment, stressing that the index needs to hold its position above 3,600 points in the coming sessions.
Another reason for the decline in trades is that investors have been focusing on digital currencies such as bitcoin, which surged to an all-time record of $20,000 last week, the analyst told Mubasher.
Bitcoin has since plunged to $13,950 on Monday.
Although digital currencies carry prospective opportunities, their prices are overvalued and will likely see a correction by around 62% or more following the recent surges, Aref commented.
Meanwhile, Jamal Ajaj, director of Al Sharhan Shares Centre in Abu Dhabi, noted that he hopes that the profit guidance for a number of companies will help boost the market in the coming period, highlighting that stock prices are currently capable of offering higher yields as opposed to other investments such as real estate or bank deposits.
Translated by: Nada Adel Sobhi
