Abu Dhabi: The upward spiral in the regional stock markets is likely to continue in the week ahead, riding on improved investor confidence.
However, there may be some profit taking in the region on the back of the pullback in commodities on international markets last week.
Market analysts said investors currently viewed some of the attractively valued regional shares as a buying opportunity, based on strong global cues.
Marwan Shurrab, assistant fund manager for Gulfmena Alternative Investments, told Gulf News: "There may be more consolidation on the regional markets and some profit taking".
"Overall, the markets seem to be headed for a strong close for the year and a rally by the end of the year," Shurrab said.
Tarek Qaqish, fund manager with Al Mal Capital, said the market sentiments were getting better following Dubai World's announcement earlier this month that it had come to a formal agreement with more than 99 per cent of its creditors to restructure approximately $24.9 billion (Dh91 billion) of its liabilities.
Reasonable upside
"The markets will see a reasonable upside next week," he said.
"Foreign investors are re-rating their risk parameters and the UAE markets at current levels are very attractive. There's likely to be more longer-term foreign investment in the region in the coming months."
On Thursday, the Dubai Financial Market (DFM) index rose 1.22 per cent to 1,647.03, trading higher volumes compared to Wednesday.
In Abu Dhabi, the Abu Dhabi Securities Exchange (ADX) general index continued to gain due to positive sentiments towards real estate, banking, consumer and construction stocks.
The ADX general index closed on Thursday 0.21 per cent higher at 2,606.61,
Last week, US stocks rose for a third week, led by technology companies, amid speculation Microsoft Corporation will sell debt for share buybacks and after Oracle Corporation beat earnings estimates and Cisco Systems said it would begin paying a dividend.
The Standard and Poor's 500 Index rose 1.5 per cent to 1,125.59, posting its longest streak of weekly gains since April. The Dow Jones Industrial Average advanced 145.08 points, or 1.4 per cent, to 10,607.85.
However, European stocks dropped for the first week in three, with the benchmark Stoxx Europe 600 Index failing to extend a four-month high, dragged lower by utilities and banks.
Meanwhile, Asian stocks rose for a third week after Japan intervened to weaken the yen and US and Chinese economic reports buoyed confidence that global growth will strengthen.
