Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADSM) indices declined 0.09% and 0.35% respectively, amid heavy buying by foreigners in both markets.

Two financial analysts predicted that the performance of the two markets will improve in the coming period, supported by institutional liquidity, after the continuation of the wave of foreign purchases, and maintain indicators at positive levels, as well as calm the US-China trade dispute.

Dubai market

Dubai Financial Market Index (DFMGI) declined 0.09% to close at 2888.39 points. Most of the sectors listed on the market stabilized with a slight increase, while the Investment and Financial Services index fell 0.85%, the Real Estate Index by 0.09% and the Transport sector by 0.8%.

Arabs and nationals were net sellers of AED 11.32 million and AED 283.9 million respectively, while GCC and foreigners were net buyers of AED 7.6 million and AED 287.7 million respectively.

Institutions are net buyers at AED 124.6 million, while individuals are net sellers at AED 123.3 million, while other investors are net sellers at AED 1.3 million.

Abu Dhabi Market

The Abu Dhabi Securities Market index declined last week by 0.35% to close at 5,096.09 points. All of the listed sectors witnessed a slight decline except for the real estate sectors which increased by 2.16% and consumer goods by 8.17%.

Arabs and foreigners were net buyers of AED 10.99 million and AED 15.899 million respectively, while GCC and nationals were net sellers by AED 15.9 million and AED 11 million respectively.

Institutions are net sellers, with a net equity of AED 7.96 million, while individuals are net buyers at the same value.

Foreign purchase

Iyad Al Bariqi, general manager of Al Ansari Financial Services, said that foreign buying was a continuous feature of the markets during the week.

Al-Bariqi explained that foreign liquidity is characterized by its experience and choice of purchasing after studying all the factors of the general economy, security and the performance of companies, which is the result of some major banks expanding foreign ownership ratios.

He added that foreign investment is characterized by the choice of attractive buying opportunities, which is a catalyst for institutional liquidity and local individuals, attractiveness of purchase in the local market.

Al-Bariqi expected the improvement in markets, high prices, high volumes of liquidity and confidence levels in the coming period, supported by institutional liquidity, after the continuation of the wave of foreign purchases, maintaining positive levels and calm the trade dispute between the US and China.

He pointed out that the news about the possibility of unifying the business between «Arabtec» and «Trojan» Holding contributed to the rise in liquidity by intensive buying on the stock, which led to a significant rise.

Partial correction

Wael Muheisen, managing director of Global Shares and Bonds, said local stock markets were flat last week, although some sessions witnessed volatility.

He pointed out that the slight decline could be considered a partial correction of the rise in the markets during the last period.

Muheisen predicted that the conditions of Dubai and Abu Dhabi markets will improve during the coming period, especially with the beginning of the fourth quarter of this year, in light of the coming liquidity from foreigners and the full impact of the decline in interest rates.