By: Mahmoud Gamal
Mubasher: Investors in the GCC stock markets are anticipating major firms to reveal their cash dividends following the end of annual financial results disclosure season, which will set the stocks’ trend over the coming period.
Stock markets in the region are likely to see selective buying in blue-chip stocks, particularly in the Dubai Financial Market (DFM), analysts told Mubasher.
By the end of last week, the GCC bourses saw a mixed performance, topped by the DFM, which jumped by 1.7% on the back of Emaar Properties’ financial results that beat expectations, while the Saudi Market Exchange (Tadawul) rose marginally.
On the other hand, Boursa Kuwait, the Muscat Securities Market, and Bahrain Bourse closed the week down.
Positive performance
Fady Al-Ghattis, CEO of Minecraft Consulting, said that the GCC stock markets have seen a positive performance since listed-firms started announcing their annual financial results.
The GCC-listed banks have posted profits that beat expectations, Al-Ghattis highlighted, adding that the banks sector has seen some challenges.
Investors in the UAE’s twin bourses are optimistic as the markets saw an upward trend last Thursday, projecting a better performance in the coming period, he indicated.
Real estate companies listed on the DFM have reported robust profits, which pushed up Emaar Properties’ stock by 6.49% on Thursday, as well as boosted the stocks of Emaar Malls and Emaar Development by 9.5% and 6%, respectively.
The CEO of Minecraft Consulting projected the UAE-listed stocks and some of the GCC-listed stocks to revive when their price/earnings ratio decline to attractive levels for buying.
FY18 dividend payments
Annual dividends will set the GCC markets’ trend over the coming period, head of asset management at MENACORP Tariq Qaqish told Mubasher.
Qaqish indicated that some of the listed companies have succeeded in resurrecting their capital, while some others inclined to implement ambitious programmes to re-purchase their shares.
Some firms reported solid liquidity that enable them of changing annual dividend distributions’ plans with a larger percentage than the proposed by boards of directors, he pointed out.
He said that firms' general assemblies are set to be held next week, which will guide investors in the bourses when these companies reveal their visions and expectations for this year.
Institutional investment
For his part, economist and technical analyst Ibrahim Al-Failakawi said that foreign and institutional traders have resumed trading in the GCC markets following the announcement of listed-firms financial results for 2018, which will boost the performance of the markets over the coming period.
Investors in the GCC-listed stocks are still anticipating new market-boosting catalysts over the coming period, Al-Failakawi stressed.
These catalysts include approving of further cash dividend proposals, unveiling new projects and government support plans for the private sector, he highlighted.
He noted that the petrochemical sector’s stocks will see further gains on the back of by the recent hike in global oil prices.
Translated by: Mai Ezz El-Din
