The momentum in UAE stock markets is likely to accelerate this week after the indices got renewed impetus from positive news about Dubai World debt restructuring plan.
Local markets are expected to face some profit booking as the indexes rallied since the beginning of the month on the back of unconfirmed reports on Dubai World debt plan and the announcement came better than expected which led to a strong rally by the end of the week.
The DFM index witnessed a strong rally on Thursday after the announcement of Dubai World debt restructuring proposals which relieved uncertainty and worries among investors.
"The news on Thursday was bett?er than expected and this added bullishness. We expect the rally will continue until the index tests its next resistance around 1900 points," said Fadi Al Said, head of Mena Equities at ING Investment.
Ahmed Hetta, Head of Research at Tadawul Shares and Bonds Mediation, said the index would face resistance around 1875 points this week. The Saudi Arabian market rallied over the positive trend.