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25 April 2024

Non-UAE investors to keep markets bullish

By Mohamad Al Kady

Foreign funds and institutions will continue to support the UAE stock markets' bullish pattern this week, analysts said.

There has been a surge in foreign investment in equity over the past two months, driving the Abu Dhabi and Dubai indices higher on the back of attractive price-to-earnings ratios.

Foreign investors, or non-UAE nationals, last week pumped Dh92.4 million into the Dubai Financial Market, buying shares worth Dh947.5 million and selling shares worth Dh855.1m.

Net foreign investment across the UAE from October 7, 2007, to February 13, 2009, totalled Dh749m. Institutional investors too were net buyers on Dubai bourse last week, mopping up Dh652.2m worth of stock and selling Dh409.7m.

Although chart analysis indicates some near-term profit-booking, the overall trend on the Dubai stock exchange is bullish, particularly if the index can test its 14-day moving average and close above the resistance of 1,514. "A breakout is very much required if the bullish trend is to be maintained," said one analyst.