Dubai: UAE equity markets could witness improved sentiment this week after consolidating in a range for the past few weeks.
On Thursday, the Dubai Financial Market General Index ended 0.14 per cent higher at 3,864.67 in a week, where the index witnessed further consolidation. The Abu Dhabi Securities Exchange general index ended 1.19 per cent higher at 4,686.19, after hitting a high of 4,690.44, a level last seen on February 15.
“Solid results and relatively stable oil prices may help selected stocks — especially the heavyweights — to gain momentum. General sentiments could also notably improve in the coming weeks,” said Talal Touqan Head of Research and advisory at Al Ramz Capital.
Global oil headed for its biggest monthly gain since 2009, trading at the steepest premium in more than a year to US crude prices weighed down by record domestic supply.
Most of the traders in the UAE are still stationed on the sidelines due to lack of fresh cues, crimping liquidity. On Thursday, volumes were recorded at Dh600 million, compared to the monthly average of Dh1 billion.
“Despite the fact that active traders are still on the sidelines, awaiting for catalysts before jumping in again, the last two sessions of the week showed some positive signs as a moderate demand targeted small-and-medium caps,” said Touqan.
Investors would continue to eye earnings from companies for leads.
“Markets would be affected mainly by earnings and decisions on dividend distribution policy, and this could drive the stocks differently,” said Tariq Qaqish, head of asset management, Al Mal Capital.
Magic bullet
“Selectivity remains the magic bullet for successful trades, and yields look relatively very attractive,” said Touqan.
On Thursday, Aldar Properties in Abu Dhabi ended 1.5 per cent lower at Dh2.63. Invest Bank remained the top gainer in trade with 14.75 per cent gains to end at Dh2.80.
First Gulf Bank jumped 1.13 per cent in trade to end at Dh17.85, making it the most active stock in trade. The bank approved a 100 per cent cash dividends and 15.38 per cent bonus shares for 2014.
In Dubai, Shuaa Capital ended 5.95 per cent higher at Dh0.730, making it the top gainer in trade. Arabtec Holding also gained 1.94 per cent to end at Dh3.16. Emaar Properties ended 0.40 per cent lower at Dh7.55.
Saudi Arabia’s Tadawul All Share index (Tasi) ended 0.07 per cent lower at Dh9,313.52.
Elsewhere, Qatar Exchange Index ended 0.21 per cent lower at 12,445.34, Muscat Securities MSM 30 Index ended 0.29 per cent lower at 6,559.32. Bahrain Bourse All Share Index ended 0.38 per cent higher at 1,474.80.
