By: Mahmoud Gamal
Dubai – Mubasher: UAE bourses are expected to recover their gains this week amid growing optimism amongst investors following several sovereign decrees aimed at bolstering the country’s property sector, analysts told Mubasher.
Moreover, three Abu Dhabi-based banks are currently considering a merger, which should support the sector’s stocks. Involving Al Hilal Bank, the possible merger and would result in a mega banking entity with $113 billion in assets.
Late Saturday, Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and deputy Supreme Commander of the UAE's Armed Forces, issued a decision regarding real estate owned by Aldar Properties in the emirate of Abu Dhabi.
The decision stipulates that companies owned by Aldar Properties would be entitled to acquiring properties at no less than 50% of capital both directly and indirectly. The decision excludes firms set up as real estate investment portfolios.
By the end of Thursday’s trading session, the Dubai Financial Market (DFM) grew 0.29% to 2,826.6 points, while the Abu Dhabi Securities Exchange (ADX) shed 0.19% to end at 4,918.32 points.
Merger news is a major incentive for a market and a main reason that contributes to returning investments and purchases, commented Waddah Al Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI).
He added that the merger news follows strong achievements by the banking sector in the first half of 2018, indicating that the UAE economy’s indices as positive for the sector.
A surge in turnover in the UAE’s twin bourses by as much as 80% suggests optimism among investors and portfolios, the analyst told Mubasher.
Globally, there are several external factors that could support a rise in UAE market liquidity particularly rising oil prices and fewer trade war tensions, Al Taha added.
Translated by: Nada Adel Sobhi