Dubai Financial Market (DFM) rose 1.8% last week, while Abu Dhabi Securities Market (ADX) index rose 0.9%, amid buying by foreigners and Gulf investors in both markets.

Local financial markets are currently awaiting third-quarter earnings, amid expectations of profit growth for banks in the country, Malian analysts said, noting that sideways movement still dominates the price trends of the indices.

Dubai market

In detail, the Dubai Financial Market rose 1.8% during last week's trading, closing at 2810.46 points. Most sectors witnessed a rise, with the exception of the insurance sector that fell by 0.44%, the consumer and luxury goods sector which fell by 1.23%, while the real estate sector witnessed the biggest increase by 2.71%, followed by the banking sector which rose by 2.57% and the transport sector by 2.46%. Arabs and nationals were net sellers of AED 12.766 million and AED 75.16 million respectively, while GCC and foreigners were net buyers of AED 22.43 million and AED 65.5 million respectively.

Abu Dhabi Market

The Abu Dhabi Securities Market also rose 0.9% to close at 5,073.49 points. The real estate sector led the gainers after gaining 5.5%, followed by Investment & Financial Services which added 2.08%. Only the energy and services sectors witnessed a decline of 0.89% and 0.557% respectively.

Nationals and Arabs were net sellers of AED 23.5 million and AED 94.6 million respectively, with a sell / buy difference of AED 1.73 million and AED 116.34 million respectively.

Third quarter earnings

Rami Samao, CEO of Denovo Financial Advisors, said that there are two axes that affect the local capital markets during the current period. The first is the profits of the third quarter of this year. Before the companies announced the performance of the third quarter of this year.

He added that this is evidenced by the decline in trading volumes, pointing out that the market focus will be entirely on the financial sector, especially banks.

Researchers expect net profit growth of the five largest listed Gulf banks to grow by 14% to about AED 14.68 billion in the third quarter of 2019, compared to the same period last year, he said. Positive impact on stock markets if expectations are met.

stay tuned

The second axis is the global trade dispute between the United States and China, as the world is currently awaiting what the Chinese and American officials will reach after their meeting which ends today.

If the trade war between the two countries escalates, it could force China to allow a significant devaluation, which would force competitors to devalue their currencies, which could then turn into an all-out currency war with dimensions and negative effects on global GDP.

He stressed that the UAE will not be harmed by this matter, but may benefit from its logistical structure of re-export.

Positive signal

Rami Rashad, technical analysis director at Al Ramz, said that the sideways movement still dominates the price trends of indices and most local stocks.

He added that despite the decline in volumes in general, trading focused on small and medium-sized stocks, which saw good gains during last week's trading, while leading stocks continued to move sideways at the highest pivotal support areas.

He pointed out that the return of the DFM index to a level above 2780 points is a positive signal in the short term, pointing out that the next resistance level in the DFM index is around 2850 points.

Regarding the Abu Dhabi index, which remains stable at the highest level (5000 points), Rashad said that the short-term price trend is still taking the cross-path, affected by the occasional movement of the stock of Abu Dhabi First Bank, which is still trading in a narrow price range above the support level. Important (15 dirhams).