Local market indicators performed well during yesterday's session, as the Dubai Financial Market closed 1.32% higher, and the index closed at 2749 points. The Abu Dhabi Securities Exchange increased by 1.12%, closed at 5075 points, and the market value of shares of companies traded in both markets gained 9.52 billion dirhams.

Two financial analysts attributed these rises in the local markets to the return of optimism to investors due to the decline of geopolitical concerns in the Middle East, in addition to the approaching annual distributions season, in addition to the presence of good investment opportunities in the local financial markets.

Domestic markets

In detail, indicators of local markets rose by good percentages during yesterday's session, as the Dubai Financial Market closed 1.32% higher, gaining 35.8 points, and the index closed at 2749 points. 185.35 million shares were traded, with liquidity reaching 219.33 million dirhams, after 3324 transactions were executed. The market value of the Dubai market increased by 3.78 billion dirhams, to 373.5 billion dirhams, compared to 369.72 billion dirhams in the session the day before yesterday.

Etihad Properties was the most active in terms of volume after trading 53.3 million shares, while Dubai Islamic Bank, the most heavily traded issue by value, reached a liquidity of 49.5 million dirhams.

The winning shares were issued, the share of «Damac Real Estate» by 3.86%, and «Arabtec Holding Company» by 2.54%.

The shares of Dubai Investment Company increased by 1.59%, the shares of Emaar Properties by 1.5%, the shares of Dubai Islamic Bank by 1.28%, then the shares of Emirates NBD by 1.19%.

Abu Dhabi Market

The general index of the Abu Dhabi Securities Market rose to the level of 5075 points, an increase of 1.12%, and its market value gained 5.74 billion dirhams, as the market value rose from 516.4 billion dirhams in the first session yesterday to 522.1 billion dirhams in yesterday's session.

On the level of stock performance in the market, the banking sector shares rose the most, with Abu Dhabi Islamic Bank rising by 2.26%, then Abu Dhabi Commercial Bank by 1.67%, and First Abu Dhabi Bank by 1.33%.

Optimism returns

For his part, the financial analyst, Walid Khatib, said that "the return of optimism to investors due to the decline of geopolitical concerns in the Middle East, was a major reason for the rise in local shares in good proportions," noting that the exaggeration in expecting the worst in this scenario between the United States and Iran It was a cause of confusion for the investors, but with the calm conditions, the markets started to rise gradually, and they compensated for the losses they suffered in the session the day before yesterday.

He pointed out that, in addition, the close of the annual dividend season, has started to have a positive impact on the market, which we have witnessed through movement on stocks with good dividends during the last period, especially in the banking sector such as Emirates NBD and Dubai Islamic Bank And also for Abu Dhabi banks, where the shares of Abu Dhabi Islamic Bank, First Abu Dhabi Bank and Abu Dhabi Commercial Bank rose by good percentages during the session.

Local stocks

For his part, John Luke, Director of Development at Thank Marks said, "The local stock markets rose with the support of the calm of the geopolitical developments that affected the global, regional and local stock markets, the decline in the confrontation between America and Iran, and optimism after the two sides confirmed that there will be no Other strikes in the coming period, as well as the presence of incentives in the local markets, related to the approaching season of annual dividends, which explains the presence of good movement on shares with dividends, led by stocks in the banking sector, real estate and leadership stocks ».

He pointed out that «the markets are expected to return to the path of major gains, as many stocks, especially large and leading companies, have reached attractive levels of purchase, coinciding with companies’ demand to expand in Dubai, to receive the largest event in the region, which is (Expo 2020).

He added: "It is expected that the real estate sector in the state will witness further improvement in the coming period with the approach of the (Expo) date, and the approach of the global event will be reflected in the movement of shares and this will push the demand for investment opportunities to be seized."

He stressed that the stock markets in the Emirates are among the most market in the region that holds good opportunities, as the UAE economy is witnessing continuous growth, with a positive future outlook from international institutions, in light of increased government spending on projects, and the executive bodies seeking to participate in the private sector in implementing projects in the country.