By: Mahmoud Gamal
Dubai – Mubasher: Investors in the UAE’s stock markets are anticipating the emergence of new market-boosting catalysts, including companies' quarterly financial results, analysts told Mubasher.
These financial disclosures are expected to control liquidity in the markets and boost indices after a period of recession, they added.
The Abu Dhabi Securities Exchange’s (ADX) general index closed Sunday on a negative note after the general index shed 16.87 points, or 0.34%, to 4,990.25 points, while the Dubai Financial Market's (DFM) general index slipped 0.06% to close at 2,790.17 points.
Expectations
Listed-banks are likely to post positive results for the third quarter of 2018, a recent research note released by SICO Bank indicated.
Emirates NBD is projected to report a 13% increase in profit of around AED 2.575 billion at the end of September, whereas First Abu Dhabi Bank’s (FAB) and Dubai Islamic Bank’s (DIB) profits are likely to rise by 10% each.
Moreover, Abu Dhabi Commercial Bank’s (ADCB) profits for Q1-18 will increase by 6% year-on-year to AED 1.155 billion, SICO projected, forecasting that Emaar Malls will report around a 17% surge in profits for the same quarter, registering AED 568 million.
The Bahraini investment bank also projected that Aramex’s profits will rise by 23% to AED 100 million in the three-month period, whereas the ADX-listed Agthia Group’s profit will grow 11% to AED 52 million.
Q3-18 results
UAE bourses are likely to resume their upward trend once companies start the financial disclosure marathon for Q3-18, CEO of MindCraft Consultants Fadi Al Ghattis said.
The banks’ sector will witness a huge transformation in operation and performance this year, he told Mubasher, highlighting that major UAE-based companies, such as Emaar Properties and Arabtec Holding, would succeed in achieving robust operating performance and positive quarterly and annual results.
The solid evaluation made by international institutions for the UAE economy will also bolster local stock markets in the medium term, Al Ghattis noted.
Translated by: Mai Ezz El-Din
