UAE bourses to keep momentum going

The upsurge on the UAE bourses may continue this week despite a possible correction and profit taking in a limited range.

The eight-session rally on Dubai Financial Market (DFM) took the index up 17.05 per cent registering a net gain of 295.11 points. Interestingly, Nasdaq Dubai has also joined the party as its index rose 13.9 per cent in May alone.

"I think the market is likely to touch the 2200-mark this week and will move between the 1950 and 2200 range on profit taking mid-week," Sherif Abdul Khalek, Trading Manager at Beltone Financial Institution, told Emirates Business.

Chances of correction in the UAE are further evident with Tadawul, the benchmark index of the Saudi stock exchange, retreating 1.06 per cent yesterday. Keeping the bullish undercurrent going though, the Tadawul All Share index opened higher, but came under pressure due to profit booking. The rally is likely to be much faster on Nasdaq Dubai.

"Since the trading on Nasdaq Dubai is done in dollar terms, the rally is likely to be much quicker than on DFM and ADX. Relatively, market sentiment is much stronger on Nasdaq Dubai as a large number of foreign institutional investors are keen to get in. Profit taking at minimum level can't be ruled out," Nadim Khan, Senior Financial Analyst at Century Financial Brokers, told Emirates Business.

"I expect our markets to continue upwards this week, but at a slower pace than we saw in the week just passed. Large cap stocks, particularly real estate, look set to lead – they are an integral part of the UAE economy and they will benefit from a resurgence in growth," said Mathew Wakeman, Managing Director for Cash and Equity-linked Trading at EFG Hermes.

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