UAE bourses in uptrend

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CORONAVIRUS IMPACT

The both UAE stock markets, both DFM and ADX, recently have been moving in an uptrend.

Profit taking or “correction” is normal in the course of a session, or even in one or two sessions. However, such adjustments in the shares’ prices are considered by experts healthy, as they will help the bourses extend the rally and reach new price levels.

Analysts expect that the rising investor optimism would bolster the current upturn, as evidently found in the last sessions when the indices drifted higher amid increasing traded values and volumes.

The liquidity ratio is ‘solid’, compared to earlier days but still ‘fragile’ when measured against the required level on DFM and ADX.

Investors should be patient till stocks rebound. Shares of the companies that pay cash dividend or distribute bonus shares are naturally expected to be the most heavily bought.

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