Analysts: Improving liquidity in the markets is a positive sign

2.71 billion dirhams market value gains in a week

  • The Dubai Financial Market index closed at 2194.63 points.

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The market value of local shares increased by 2.71 billion dirhams, during last week's trading.

The markets witnessed mixed results during last week's sessions, as the Dubai Financial Market declined by 0.8%, while the Abu Dhabi Stock Exchange rose by 0.93%.

Two Malian stores said that the local markets took a casual movement during the past week due to anticipation of companies announcing the results of the third quarter of this year, in addition to the effects of Arabtec news and the decline in global and oil markets.

They pointed out that despite the continued volatility in the markets, the improvement in liquidity levels was one of the most important positive indicators that were monitored during the week.

In detail, the financial markets witnessed a divergence during last week's sessions, as the Dubai Financial Market fell by 0.8% to the level of 2194.63 points, and the index lost 20 points, compared to last week's closing of 2214.32 points.

While the Abu Dhabi Securities Market index rose by 0.93%, reaching the level of 4554.37 points, a gain of 42 points, compared to last week's close of 4512.5 points.

The market value of shares on the Dubai market reached 308.61 billion dirhams, compared to 311.395 billion dirhams, at the end of the previous week, down by 2.8 billion dirhams.

Abu Dhabi Securities Market shares gained 5.51 billion dirhams, after the market value recorded 682.14 billion dirhams, compared to 676.63 billion dirhams at the end of the previous week.

For his part, the director of branches at Al-Ansari Financial Services Company, Abdul Qader Shaath, said that “there have been no changes in the market in terms of transactions, as the (accidental) movement dominated the performance of both markets during the week’s sessions, and despite this, a relative improvement in liquidity levels was observed. Supported by good movement by the banking sector, which accounted for 60% of the trading in both markets.

He added that this fluctuation in the market indices came due to the disparity in investor attitudes towards the leading stocks, amid anticipation for companies to announce business results for the third quarter, in addition to the emergence of some fluctuations in global markets and oil prices.

He pointed out that the news of «Arabtec» still imposes a state of anticipation in the market in addition to waiting for the results of the companies to be announced, pointing out that the final decisions of the Board of Directors of «Arabtec» affected both markets.

For his part, financial analyst Walid Al-Khatib said, "Despite the calm situation controlling the performance of the market, a relative improvement in liquidity indicators has been observed," attributing this to psychological and financial effects, due to the news circulating about Arabtec, related to moving forward with the liquidation of the company, In addition to investors awaiting the announcement of the companies' results for the third quarter of this year in light of the repercussions of the Corona virus, in addition to being affected by the fluctuation in the oil markets, and global market indicators.

He pointed out that there are positive aspects in the market, in addition to improving liquidity levels, which is that lower share prices could create a good buying opportunity.

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