Dubai Financial attracts 3.27 billion dirhams in liquidity in a week

The Dubai Financial Market closed the week’s trading up by 0.28%, or the equivalent of 16.85 points, at 6114.32 points, continuing its gains for the fourth week in a row.

Shares listed on the Dubai Financial Market attracted liquidity exceeding 3.27 billion dirhams, after trading about 1.07 billion shares and executing 61,636 transactions.

During the week’s trading, foreign (non-Arab) investors in the market tended to buy with a net investment of about 137.35 million dirhams, after recording purchases worth more than 1.667 billion dirhams, compared to sales worth 1.53 billion dirhams. The market capitalization of Dubai Financial settled above one trillion dirhams at the end of the week’s trading, with gains amounting to about 460.73 million dirhams.

In a week, “Alec Holding” shares rose by 5.61%, while “SALIC” shares rose by about 4.69%, “GFH” by about 4.09%, “Dubai National Insurance and Reinsurance” by 4.04%, “Takaful Emarat” by 3.66%, and “DEWA” by 3.58%.

In addition, the Abu Dhabi Securities Market closed the week’s trading at 9,967.21 points, declining by 0.22%.

During the week’s trading, shares listed on the Abu Dhabi Market attracted liquidity exceeding six billion dirhams, after trading about 1.4 billion shares and executing 83,135 transactions.

For his part, the trading director at Daman Securities Company, Wael Mahdi, said, “The Dubai Financial Market has witnessed clear increases since the beginning of this December, as the index succeeded in exceeding important technical levels at 5,900 points, then 6,000 points, before crossing the 6,100 point barrier, which levels currently represent major resistance areas.”

Mahdi added, in statements to Emirates Today, that the market witnessed during the past weeks a strong return of liquidity, which was reflected in the positive performance of the leading stocks, led by Emirates NBD Bank, which recorded new historical levels near 29 dirhams, in addition to positive movements in the shares of (Emaar and Emaar Development), as well as Dubai Islamic Bank, which achieved good price levels. He explained that the stability of the index above the level of 6,000 points, in conjunction with the increase in trading volumes over the past two weeks, reflects the return of investors, whether foreign or individuals, to building financial positions at appropriate technical and price levels, which is in line with the nature of this stage of the year and its near end.

Mahdi stated that the current momentum is supported by strong financial results for companies, especially in the real estate, banking and services sectors, in addition to the positive quarterly distributions announced by listed government companies during the last period, which contributed to enhancing liquidity flows to the markets.

He pointed out that investors are anticipating the expected cash dividends by the end of the year, especially in light of the comparison with last year’s dividends, which amounted to about 7% in some companies, compared to interest levels that have declined to 3.65% at the present time, which enhances the attractiveness of stocks as an investment option.

Mahdi expected that seizing opportunities and building financial positions at current levels would contribute to supporting market performance during annual closings, supported by expectations of lowering interest rates, which would enhance borrowing opportunities for companies, provide additional liquidity to implement projects and increase profits.

He stressed that the UAE economy in general, and the Emirate of Dubai in particular, continues to provide an attractive environment for capital, in light of strong growth indicators and increasing attraction of investments, which supports the continued positive performance in the UAE financial markets, in addition to the growing role of medium-sized companies in raising liquidity levels and supporting the breakthrough of positive technical levels during the coming period.