Dubai Financial Market (DFM) index rose 0.3% yesterday, while the Abu Dhabi Securities Market (ADX) gained 1.7%, supported by institutional and foreign purchases.

Analysts' neutralization of geopolitical risks, as well as institutional and foreign purchases, of major stocks in the two markets, especially those of the banking sector, have had a positive impact on the performance of the market, he said.

Dubai Financial

In detail, the Dubai Financial Market index rose yesterday, 0.3% to close at 2878.04 points, while the performance of most sectors stabilized, except a slight decline in the sectors of investment and financial services, insurance, consumer goods and luxury goods.

Arabs, GCC nationals and nationals were net sellers of AED 4 million, AED 807.4 thousand and AED 9.22 million respectively, while foreigners were net buyers of AED 14 million.

Institutions were net buyers of AED 3.48 million, while individuals and other investors were net sellers of AED 2.8 million and AED 699.5 thousand respectively.

«Abu Dhabi Securities Exchange»

Abu Dhabi Securities Market Index has increased by 1.71% to close at 5160.73 points. Most sectors witnessed a rise, except for a slight decline in the index of investment and financial services sector, which fell by 0.07%, the industrial sector by 0.05%, and the consumer goods sector by 3.52%.

Arabs, GCC and nationals were net sellers of AED 4.7 million, AED 17.24 million and AED 48.4 million respectively, while foreigners netted ADX buyers by AED 70.323 million.

Oil prices

Tarek Qaqish, general manager of asset management at Minacorp, said that one of the factors that affected the market's performance was the rise in oil prices, but stressed that geopolitical risks still exist and will be the biggest influencer in investor decisions in the coming period, as it may limit the benefit of Market from high oil prices.

He explained that the purchases were selective in the market yesterday on the major stocks, supported by institutions, and may be one of the reasons for the purchase is near the announcement of the results of companies during the third quarter.

He considered that investors who made a "buy" in the market, yesterday, betting on the escalation of geopolitical conditions in the coming period.

Market cohesion

Wadah al-Taha, a member of the National Advisory Council of the UK's Institute of Investments and Securities in the UAE, said the market was able to consolidate yesterday amid geopolitical developments, an indication that investors neutralized those risks and see their impact only on oil prices.

He pointed out that the concentration of the relative weight of the DFM index in certain stocks contributed to the support of the index, pointing out that the shares of Emirates NBD, «Dubai Islamic» and «Emaar» rose yesterday, and was the largest supporter to support the market, and this is due to its financial foundations Strobe.

He pointed out that the market is in a state of anticipation indicated by the decline in trading values ​​in the market yesterday, stressing that the market performance will remain linked to the development of geopolitical conditions in the region.