ID :
59844
Sun, 05/10/2009 - 14:16
Auther :
Shortlink :
https://oananews.org//node/59844
The shortlink copeid
UAE stocks to continue upward move
Stock markets in the UAE are projected to continue their upward trend this week, albeit with increasing volatility in both the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX). Analysts predicted the markets' strength in the upward channel in the short-term was still intact and might continue this week, supported by rallies in global and regional markets according to a report in "Emirates Business."
Sherif Abdel Khalek, trading manager of institutional investors at Beltone Financial, said: "We still see bullishness in the DFM and the ADX over the short-term. Despite the DFM closing down at the end of last week, the market was bullish throughout Thursday's session with profit-booking at the end, which dragged the market down.
"Also, retail traders and short-term investors were closing their positions before the weekend. This is a temporary effect and we expect the market will bounce back this week."
He said the UAE markets were still linked to the performance of global and regional markets. "American and Asian markets have rallied well and this is improving the sentiment among investors in the local markets. Also, Saudi Arabia's stock market advanced yesterday, which seems to have had a strong impact on other GCC markets for several weeks."
However, Abdel Khalek also expected increasing volatilities in both markets, which might create sharp ups and downs in the indexes. "There is still high volatility in the DFM and this is due to high speculations and short-term movements by the majority of investors. The ADX was stable for a long time but this trend is beginning to change now. The ADX is facing increasing volatility at the current stage due to speculations and short-term trading."
Abdel Khalek said the majority of investors in the UAE markets were still speculators and short-term traders, who are exerting pressure on the index with their quick profit-booking movements.
"We have seen increasing foreign and institutional investments in the DFM, but they are still from short-term traders. Foreign investments increased last week, but are still well below levels seen during 2007-2008. Foreign and institutional investors see the potential for good gains during the current bounce in the markets and are trying to benefit from this situation in the short-term. Long-term investments are still very low in the DFM."
Ahmed Abdel Rahman, head of research at Amanah Financial Services, said the increasing turnover in both the DFM and ADX last week reflects increasing interest from investors as well as increasing speculations in the markets.
"Turnover increased sharply last week in both markets as the cumulative trade volume recorded 3.6 billion shares, a 67.4 per cent increase over the previous week. Trade value reached Dh5.7bn, an 87.7 per cent increase over the previous week. Most of the turnover was concentrated in the DFM, which attracted 73.2 per cent of the trade volume and 66.4 per cent of the trade value," Abdel Rahman said.
"The real estate sector in both markets performed strongly last week, adding more than eight per cent. However, the banking sector was the main supporter of the indexes, rallying by 3.3 per cent," he added.
Sherif Abdel Khalek, trading manager of institutional investors at Beltone Financial, said: "We still see bullishness in the DFM and the ADX over the short-term. Despite the DFM closing down at the end of last week, the market was bullish throughout Thursday's session with profit-booking at the end, which dragged the market down.
"Also, retail traders and short-term investors were closing their positions before the weekend. This is a temporary effect and we expect the market will bounce back this week."
He said the UAE markets were still linked to the performance of global and regional markets. "American and Asian markets have rallied well and this is improving the sentiment among investors in the local markets. Also, Saudi Arabia's stock market advanced yesterday, which seems to have had a strong impact on other GCC markets for several weeks."
However, Abdel Khalek also expected increasing volatilities in both markets, which might create sharp ups and downs in the indexes. "There is still high volatility in the DFM and this is due to high speculations and short-term movements by the majority of investors. The ADX was stable for a long time but this trend is beginning to change now. The ADX is facing increasing volatility at the current stage due to speculations and short-term trading."
Abdel Khalek said the majority of investors in the UAE markets were still speculators and short-term traders, who are exerting pressure on the index with their quick profit-booking movements.
"We have seen increasing foreign and institutional investments in the DFM, but they are still from short-term traders. Foreign investments increased last week, but are still well below levels seen during 2007-2008. Foreign and institutional investors see the potential for good gains during the current bounce in the markets and are trying to benefit from this situation in the short-term. Long-term investments are still very low in the DFM."
Ahmed Abdel Rahman, head of research at Amanah Financial Services, said the increasing turnover in both the DFM and ADX last week reflects increasing interest from investors as well as increasing speculations in the markets.
"Turnover increased sharply last week in both markets as the cumulative trade volume recorded 3.6 billion shares, a 67.4 per cent increase over the previous week. Trade value reached Dh5.7bn, an 87.7 per cent increase over the previous week. Most of the turnover was concentrated in the DFM, which attracted 73.2 per cent of the trade volume and 66.4 per cent of the trade value," Abdel Rahman said.
"The real estate sector in both markets performed strongly last week, adding more than eight per cent. However, the banking sector was the main supporter of the indexes, rallying by 3.3 per cent," he added.
