The performance of the local financial markets varied during the last week, amid the decline of the Dubai Financial Market index by 2.4%, and the Abu Dhabi Securities Market index rose 0.56%, with large sales by institutions and citizens.

Two financial analysts attributed the performance to the impact of local stocks geopolitical tensions, but stressed at the same time that there are positive factors that will contribute to support the performance of the markets in the coming period, is the reaction of local markets less than expected to those tensions that the markets held up last week, noting He pointed out that the direction of local markets will be determined by the results of the companies in the third quarter of this year.

Dubai market

In detail, the Dubai Financial Market index declined during the last week, by 2.4%, to close at 2819.69 points. Most sectors witnessed a decline led by investment and financial services, which fell by 3.96%, while the banking sector index fell by 2.55%. Arabs and nationals were net sellers of AED 3.59 million and AED 158.423 million respectively, while GCC and foreigners were net buyers of AED 33 million and AED 128.9 million respectively.

Institutions were net sellers at AED 27.6 million, while individuals and other investors were net buyers at AED 20.22 million and AED 7.4 million respectively.

Abu Dhabi Market

The Abu Dhabi Securities Exchange (ADX) ended the week up by 0.56%, closing at 5124.72 points.

Arabs and foreigners were net buyers of AED 9.2 million and AED 78.322 million respectively, while GCC and nationals were net sellers by AED 43 million and AED 44.5 million respectively. Institutions are net sellers at AED 13 million, while individuals are net buyers.

Positive indicators

Mohammed Ali Yassin, chief executive of strategy and clients at Al Dhabi Capital Company, said the UAE's financial markets were under geopolitical tensions, as was the case in the rest of the Gulf.

Yassin added that despite the tensions, there are positive signs, noting that the initial reaction to these tensions was not as negative as some had expected.

He explained that one of the reasons for the decline during Thursday's session, is the periodic review of UAE stocks in the index «FTSE Russell», which followed one of the shares of the UAE, and the weight of other shares were reduced.

Yassin pointed out that the direction of the market will be determined by the results of companies in the third quarter of this year, which companies will begin to announce during the middle of next month.

He said that the interest rate cut, announced by the Central Bank, yesterday, will have a positive impact on the economy, as it will revive the tourism sector under the competitive price of the local currency, and will stimulate companies to borrow, but its negative impact may be in the banking sector in the short term, but it It will turn positive and will be reflected in the performance of all sectors with fourth quarter results.

Selling pressure

Iyad Al Bariqi, general manager of Al Ansari Financial Services, said local markets are still under selling pressure due to geopolitical developments in the last sessions of last week.

He added that in such circumstances, liquidity and anticipation remain in control until there is an index of breakthroughs or incentives from companies to return the markets to rise.