Two financial experts expected that the local money markets would witness a price boom and an increase in liquidity during the second quarter of this year, due to the low interest rates on bank deposits, in addition to the end of the distribution season, which usually sees part of it re-pump into the market again after receiving it.
They mentioned to “Emirates Today” that the market maker in the Abu Dhabi Securities Exchange has maintained, up to now, good levels of performance, and good liquidity that is likely to increase, in addition to the Dubai Financial Market, whose indicators support strong stocks, such as Emaar and banks.
In addition, the liquidity traded in both markets reached 1.2 billion dirhams yesterday, while the listed companies achieved market gains of five billion dirhams.
In detail, the general index of the Dubai Financial Market ended yesterday’s transactions, up by 0.68%, at 2569 points, and with a total value of 166 million dirhams.
Shares of 17 companies rose, out of 35 companies that were traded, while shares of nine companies declined, and nine companies remained steady.
Abu Dhabi Market
For his part, the general index of the Abu Dhabi Securities Exchange increased by 0.84%, at 5711 points, and with a total value of 985 million dirhams.
Yesterday, liquidity in both markets reached 1.2 billion dirhams, the largest proportion of which was concentrated in the Abu Dhabi Stock Exchange, while listed companies achieved market gains of five billion dirhams.
In addition, the expert in financial markets, Dean Kanaan, said that the performance of local financial markets, over the past six months, is very good in view of the conditions of the global economy, expecting that the improvement will continue, which may reach a boom due to the decline in interest rates on bank deposits to their lowest levels. This is what drives money-holders to the sectors with higher risks, especially the stock market.
He added that the general assembly season, and the accompanying approval of annual distributions, will also contribute to the recovery of the markets, as part of these distributions are re-pumped again for the purpose of investment, which increases the attractiveness of the market.
Kanaan indicated that the performance of the local financial markets yesterday was stable and positive, especially in the Abu Dhabi Stock Exchange, in which the market maker succeeded in maintaining the usual levels of liquidity and substantially supporting prices, while the leading stocks play a pivotal role in the performance of the Dubai Financial Market. Especially the share of «Emaar» with its three companies and banks. He pointed out that the presence of the market maker in Abu Dhabi and the strong stocks in “Dubai Financial” suggest the two markets for a major boom during the next quarter of this year, especially as the Dubai Financial Market index is expected to touch the level of 3000 points.
For his part, the expert in financial markets from BH Mubasher Financial Services, Jamal Ajaj, confirmed that the financial markets in the country still enjoy strong investment opportunities, especially with the decline in the interest rate on deposits, as liquidity is directed to alternative investment channels, foremost among which is The stock market, given the calm in the real estate market. He said that the second quarter of this year witnesses the completion of the distributions and their receipt, and that part of them will be returned to the market in the form of liquidity that qualifies it for a strong rise.
Ajaj added that the leading stocks in the Dubai Financial Market support the expectations of the rise, pointing out that all the internal economic factors are promising, in addition to the approaching exhibition “Expo 2020 Dubai”, which supports the psychological factor for investors and stimulates more liquidity for entry and investment.
– Local stocks gain 5 billion dirhams, with liquidity exceeding 1.2 billion dirhams.
Shares of 17 companies increased, out of 35 companies that were traded on the Dubai market.
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