Two analysts: Re-pump cash dividends support stocks

Dubai Financial Market witnessed a decline of 0.78% during last week to close at 2574.21 points, while the Abu Dhabi Securities Market Index gained 1.69% to close at 4997.56 points, supported by the rise achieved by the end of yesterday's session.


Dubai Financial Market witnessed a decline of 0.78% during the week to close at 2574.21 points, while the Abu Dhabi Securities Market index rose by 1.69% to close at 4997.56 points, supported by the rise achieved by the end of yesterday's meeting.

Two financial analysts told Emirates Al-Youm that the markets are currently waiting for the expected cash flow from the companies' distributions after March, pointing out that pumping back distributions supports the market.

Dubai Market

In detail, the Dubai Financial Market index fell by 0.78% to close at 2574.21 points. The Banks sector index decreased by 3.61%, the Insurance sector decreased by 2.89%, while the real estate sector decreased by 3.24%, the consumer and commerical sectors by 2.13% and the services sector by 0.45%.

Arabs made a net buyout of AED 447.155 thousand, while GCC nationals intensified their purchases after netting reached AED 432.144 million. Meanwhile, foreign investors were net sellers at AED 325.745 million. Citizens were also net sellers at AED 106.85 million . Institutions netted AED 133.428 million, netting AED 135.82 million and AED 2.393 million respectively.

Abu Dhabi Market

The Abu Dhabi Securities Exchange (ADX) gained 1.69% during the week, closing at 4997.56 points, supported by the 3.69% rise in the index, which is the highest increase in the index in two years and eight months. Market performance was boosted yesterday by United Arab Bank (UBS) which rose by 14.42%, Abu Dhabi First Bank by 6.46% and Etisalat by 5.24%.

Dividend

Al-Ansari Financial Services Director Iyad Al-Barriji said that the country's capital markets witnessed declines during the week, under pressure from the distribution of dividends for a number of leading stocks, such as Dubai Islamic Bank and Abu Dhabi First.

He added that these declines during the week were not as acute or alarming and accompanied by the size of natural liquidity, similar to the rate of previous periods, although the implementation of special deals on some of the shares of companies, are corrections and the result of the maturity of profits and there is nothing to worry and fear.

He said that the market is currently waiting for the liquidity flowing from corporate distributions, which usually take place after March to recycle and inject this liquidity again in the markets and is a catalyst and active traffic.

Gamal Ajaj, a banking expert, said that the Dubai Financial Market witnessed a decline during the week due to the expiration of the maturity of some companies for the year 2018. He said that the Abu Dhabi market is also undergoing profit-taking, amid good volumes, but it saw a strong rise at the end of yesterday's meeting Supported by Abu Dhabi First.

Ajaj expected markets to rise next week, gradually returning to levels reached two weeks ago. Emaar Properties and Emaar Properties are expected to announce last year's cash dividends, which could be a boost to Dubai Financial Market.

Banking sector

The Banks sector gained 2.27% during the week, while the Investment & Financial Services sector declined by 9.47%. The real estate sector rose 6.2%, the telecommunications sector rose 0.59%, while the energy sector fell 1.2%. Foreigners were net buyers at AED 175.75 million, while Arabs were net sellers at AED 9.57 million. AED 18.83 million.

REF: https://www.emaratalyoum.com/business/local/2019-03-15-1.1192104