By: Mahmoud Gamal
Dubai – Mubasher: There are four main factors that may set the trend of the UAE stock markets this week, including the impacts of the decree issued regarding Aldar Properties-owned companies, in addition to the results of Emaar Development’s board meeting.
By the end of Sunday, the Dubai Financial Market’s (DFM) general index added 0.57% at 2,842.67 points, while the Abu Dhabi Securities Exchange’s (ADX) general index remained stable at 4,918.08 points.
The recent heavy trading in some investment portfolios in the UAE bourses have contributed to the equity markets’ positive movement, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.
Accordingly, many investors inclined to trade on small- and mid-cap indices, mainly Islamic Arab Insurance Co (SALAMA), which Abu Dhabi Financial Group acquired up to a 30% stake in, Kassabieh added.
SALAMA belongs to the insurance segment’s stocks that hit attractive levels, pushing some investors to invest in amid the current positive news, he stressed.
Moreover, several investors are anticipating the results of the Emaar Development’s general meeting, set to be held next Wednesday to discuss temporal cash dividends distributions, he indicated.
Kassabieh emphasised that the DFM is likely to revive on the back of real estate stocks, especially when these dividends are approved.
He also added that the potential merger between Union National Bank (UNB) and Abu Dhabi Commercial Bank (ADCB) will boost the ADX after facing selling pressures and a wave of profit-taking over the past sessions.
The decree issued regarding Aldar Properties and its subsidiaries will be reflected on the company’s future profitability and will strengthen acquisitions in Abu Dhabi’s real estate sector, he noted.
Abu Dhabi Crown Prince and deputy Supreme Commander of the UAE's Armed Forces Mohamed Bin Zayed Al Nahyan has issued decree no. 58 of 2018 that stipulates that Aldar Properties-owned companies will be entitled to directly and indirectly acquiring real estates at no less than 50% of capital. The right excludes firms set up as real estate investment portfolios.