- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:26 06:39 12:34 15:52 18:24 19:37
The UAE bourses are likely to move sideways in the last two days of the year because of profit-taking. The Dubai Financial Market (DFM) General Index, which crossed the 6,000-point mark, dropped marginally on Thursday, as investors booked profits.
“It is more of a tradition to see investors selling stocks by year-end,” Mohamed Alami, relationship manager, Naeem Shares and Bonds, said. The DFMGI has soared 45.18 per cent since the beginning of the year until now, and analysts expect the index to surge by 20 to 25 per cent.
Foreign investment banks and international research firms have upgraded their outlook for the UAE and companies, which is fuelling further overseas interest.
“There is a likelihood of profit-taking happening by retail investors in some stocks in the next few days, but foreign institutions with a medium to long-term outlook are accumulating stocks,” Sherif Abdul Khalek, dealing room manager, Al Futtaim HC Securities, said earlier.
Cairo-based EFG Hermes expects substantial increase in initial public offering activity in 2008, driven by both higher prices and volumes. “The increase in listings will provide greater sectoral breadth to the market. The new listings are critical in generating new investment opportunities and attracting fresh liquidity, particularly from Western institutions,” it said in a report.
Shares of real estate companies such as Emaar Properties, Deyaar and Union Properties will see accumulation happening on their counters. Banking scrips will also hog the limelight after the UAE Central Bank governor said banks’ combined profits rose over 25 per cent to Dh24.8 billion compared with Dh19.4bn in 2006.
“The future is bright for banks. The economy is to grow as demand for oil and gas will continue to be strong for coming years, creating additional opportunities for banks,” he said.
Aldar Properties, Sorouh and RAK Properties will top the volume charts on the Abu Dhabi Securities Market, with the index recording growth of 54.12 per cent from the beginning of the year. Shares of banking and energy firms will be in demand, thanks to the growth in bank profits and rising crude prices. “The Abu Dhabi market is investor-driven, so we will see more sustained buying,” said another analyst.
Follow Emirates 24|7 on Google News.