By: Mahmoud Gamal
Dubai – Mubasher: UAE bourses have begun recovering as seen in the rise in turnover to AED 700 million ($190.55 million) on Monday, analysts told Mubasher.
This comes after the UAE government announced a host of incentives in the real estate sector and amid news of probable mega-mergers, they added.
Signs of recovery are showing in the twin UAE markets on the back of domestic and external catalysts, Tarek Qaqish, head of asset management at MenaCorp, told Mubasher, indicating that oil prices above $70 per barrel (pb) were among the positives as they help boost the government's revenues, which can be reinvested in projects.
Forecasts that First Abu Dhabi Bank (FAB) will see its weight increase in the MSCI Emerging Markets index also contributed to the gains, the analyst explained, noting that FAB recorded strong gains of around AED 5 billion on Monday.
The upcoming review for the MSCI Emerging Markets index will be in October.
Government spending on projects where the private sector is a player will have a role in UAE market movement in the coming period, Qaqish forecast.
Financial results will also indicate the strength of companies' portfolios as well as market direction soon.
Translated by: Nada Adel Sobhi