In a recent interview for CNBC Arabia, Yahia Abdel Azim, GM of Delma Brokerage commentated on last week’s performance of the UAE capital markets, saying that turnover improved remarkably compared to the previous sessions.
He added that bellwether Arabtec witnessed heavy buying today, reflecting investor upbeat outlook for strong H1 figures and the announcement of new contract award.
Abdel Azim indicated that the losses incurred by Emaar’s Indian subsidiary led the DFM-listed developer’s shares to pare early gains of AED 3.11. The analyst ascribed the current fluctuations to tightened liquidity, noting that the stock exchanges have recorded the lowest liquidity since 2010 during the first week of July. He also pointed out the average weekly turnover of the bourses that neared AED 160-170 million, commenting how these figures boost stocks and encourage investors to put their money back to work.
Worldwide, stock markets will reflect the developments related to Greece and Portugal’s debts over the coming weeks, Abdel Azim continued. “The local bourses are usually hurt by negative indicators of global peers,” he explained.
As for lack of positive news and the weak performance of blue chips on ADX, the analyst stated that Methaq showed solid performance, yet eroded some of its gains. ADCB also demonstrates strong performance. ADX is witnessing volatility and none of its stocks closed at an intra-week high, which mirrors negative sentiment among investors, Abdel Azim concluded.
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