DFM’s market capitalization increases by 9.4% in March

The Dubai Financial Market General Index rose 16.7% to 2135.4 points at the end of April compared to 1829.2 points at the end of March. Read more

DFM General Index Hits Fresh High

The Dubai Financial Market general index rose 1.62% to 2,135.40 points, its highest close since November 2009. Renewed buying in blue-chip shares lifted the DFM general index to a new three-and-a-half-year high.

Emaar Properties shares rose 1.26% as the property developer reported a 9% increase in first-quarter net profit on Tuesday to Dh556 million, compared to Dh512 million in the fourth quarter of last year. Read more

UAE Stock Markets Reach Fresh Multi-year High

UAE stock markets reached fresh multi-year highs as trading volumes increased, but some market players said valuations were starting to appear stretched and a short-term correction could be imminent.

Dubai Financial Market’s general index climbed 1.1% to its highest close since November 2009 as trading volume hit a two-week high. The index is up 27.9 percent this year so far.

The benchmark now has a 14-day relative strength index (RSI) reading of 76.7, with 70 and above considered an overbought signal, and some analysts said this could prompt retail investors to take profits — though any pull-back would probably be brief.

UAE stock markets look slightly overheated at present. It seems the both exchanges are running ahead of company fundamentals, therefore a correction is very much probable in the near term. If the fundamentals do catch up, then more long-term foreign investments will flow into the market.

Emirates NBD was the main boost to the market with a 2.2 percent gain. The bank’s shares advanced 78.9% this year. The bank reported an estimate-beating 31% rise in first-quarter profit before the last trading session’s opening. According to Global Investment House, the quality of earnings of the bank has improved over the previous year.

Six stocks gained more than 3%, including Dubai Financial Market and Drake & Scull, which rose 3.5 and 3.6% respectively.

Abu Dhabi’s measure rose 1.0% to its highest close since November 2008, taking its year-to-date gains to 25%. Its 14-day RSI is now at 82.9.

The catalyst is still the UAE recovery story and the anticipation of strong returns for listed companies exposed to that recovery, according the market analysts.

Dubai Financial Market General Index hits 2,000 points

For the first time since Nov. 2009, the Dubai Financial Market General Index (DFMGI) crossed the level at 2,000 points in early Tuesday trading, shortly after the opening.

Elsewhere, Abu Dhabi Securities General Market Index closed the previous session at 3,153.03. The index faced resistance near 3,140 and corrected. Eventually, it found support near the 20-day EMA and started inching higher. On Monday, April 22, 2013, it ended near the previous higher levels in a bullish candlestick formation, suggesting optimism among traders at higher levels. Traders are cautiously optimistic at current levels. Going forward, if the index sustains above 3,160, the current rally could extend up to 3,230 and 3,290. On the other hand, it could find support at 3,077 (20-day EMA) and 3,060.
Medium- and long-term investors can stay in the market as long as the index ends above 2,970

SCA to issue new regulations to enhance stock markets

The 5th Annual Conference of the UAE Securities and Commodities Authority (ESCA) was held here in Dubai under the auspices of Engineer Sultan bin Saeed Al-Mansoori, Minister of Economy and SCA Board Chairman.

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DFM market capitalization increased at the end of Q1 by 12.3% to AED 204.2 billion

The Dubai Financial Market General Index increased by 12.7% to 1829.2 points at the end of this quarter compared to 1622.5 points at the end of Fourth quarter of 2012.

”At the sectoral level, indexes of six out of the nine sectors represented on DFM ended the quarter in the green, with the Telecommunication sector increasing the most by 34.1%, followed by the Services and the Real Estate and Construction sectors by 24.8%, and 19.8% respectively. The Consumer Staples sector index has not changed during this quarter, while the Insurance and Industrial indices decreased by 11.9% and 0.3% respectively,” a DFM quarterly statistical report said. Read more

UAE Equity Markets Advance on Foreign Investments Comeback

The UAE equity markets have been shown interesting activities recently. The prior market expectations were quite bearish. Projections pointed to a corrective index wave that could place equities to the 1700-1750 area. However the UAE market performed otherwise which lead in the direction of more upside local equities.

In late March the market faced corrective wave. Though the recent days, equities shifted their direction into a rally. The major factor for the bull recovery is the return in foreign buying activity. All the previous equities rallies were fanned by foreign influx. Therefore the scale of the influx is crucial for the UAE market trend determination.

Since 2008 the foreign investment is the major driver which triggers all the bull and bear trends on the market. The disregard of this foreign tendency proved to lead only to poor investments and lost opportunities.

There is not reliable explanation why foreigners returning into the UAE market. Moreover the world events suggest a risk-off mode on track. One of the possible reason is believed to be a season earning strategy.

In the upcoming days UAE will announce the Q1 financial results and it very likely to witness more foreign purchase before the report.

There is an important statistic which should be taken into account. The recent rally has been conducted by small-scale stocks. This could arrange the setting for an overtake move by the large equities. Something similar has been witnessed at the beginning of the 2013.

However it is a very hard task to determine how far the rally could go. Though, as long as the foreign investors remain net buyers the UAE equities will thrive.

The emerging independent financial network in the Emirates has a strong and influential presence. And that is namely among the foreign investor community. Gulf-based financial advisors are also adding to a setting of increasing risk tolerance. Therefore advisors are capable of pouring more investment into the equity product from the Emirates.

The flow of foreign capital to the Gulf Region could slow over time. However economically attractive centers like UAE, Qatar and Saudi Arabia are expected to maintain their attractiveness. These countries remain the most popular investment venues and are all poised to experience consistent growth during this year.

International markets record more loses on weak economic data

The decision comes with all kinds of risks, but Bank of Japan Leader Haruhiko Kuroda’s goal was to achieve a rate of inflation at 2 percent for Japan’s sluggish economy. The country has experienced a stagnant economy and falling prices in the last two decades. Falling prices hurt the country because companies are less likely to invest and citizens don’t want to spend money. Moreover, Japan has seen its export sector decline. Read more

Bank of Japan Introduces Astonishing Stimulus Package

*Written by Marcus Holland from Options-Trading.com

The decision comes with all kinds of risks, but Bank of Japan Leader Haruhiko Kuroda’s goal was to achieve a rate of inflation at 2 percent for Japan’s sluggish economy. The country has experienced a stagnant economy and falling prices in the last two decades. Falling prices hurt the country because companies are less likely to invest and citizens don’t want to spend money. Moreover, Japan has seen its export sector decline. Read more

GCC Markets Performance in March 2013

· All GCC markets, except the UAE, ended in the green

· Kuwait led the rally, with a 4.0%MoM gain, followed by Saudi Arabia

· Trading activity increased on MoM basis

· IPO activity remained subdued

GCC markets on a rise – UAE backtracks
GCC equity performance remained mixed in March. All bourses, except ADX and Dubai, gained during the month. The KSE index experienced the highest growth of 4.0%MoM amongst GCC markets. Saudi Arabia’s Tadawul index, the second best performer, rose 1.8%MoM. Dubai was the worst performer (down 5.1%MoM) amongst GCC markets, Oman and Bahrain experienced a marginal growth of 0.6%MoM, 0.2%MoM and 0.2%MoM, respectively, in March.

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