Financial markets recorded mixed performance during the week

Two analysts: The listing of free zones shares attracts more foreign investments

• The general index of Dubai Financial Market closed at 2,185.5 points. = Archival

picture

Two financial analysts said that listing the shares of free zone companies will increase the competitiveness of capital markets and their ability to attract more foreign investments.

They explained to Emirates Today that the listing of these shares will diversify financial products in the local markets, provide more options for investors, and contribute to the influx of more capital, adding that the announcement of the launch of a platform for these companies was the most prominent event of the week in the markets. Financial, in which the indices of both markets varied due to weak financial liquidity, as the general index of the Dubai Financial Market closed down by 0.04%, while the Abu Dhabi Stock Exchange closed higher by 0.05%.

Dubai market

In detail, the general index of the Dubai Financial Market closed down by 0.04%, and lost nine points from its index, which closed at 2,185.5 points, during the week’s trading sessions, compared to 2,194.6 points, the previous week’s close.

On the other hand, the Abu Dhabi Securities Exchange closed at an increase of 0.05%, gaining 2.4 points, closing at 4,556.7 points during the week’s trading sessions, compared with the level of 4,554.3 points at the end of last week.

The Board of Directors of the Securities and Commodities Authority recently discussed the system for offering and listing companies incorporated in free zones, in accordance with the Dubai Initiative "X10".

Free Zones

For his part, Director of Al-Ansari Financial Services Company, Abdul Qader Shaath, said that “the news related to offering shares from free zone companies was one of the most prominent events of the week,” expecting that when activated, it will contribute to attracting more foreign investments by facilitating the access of investors In the free zones, to the financial markets, and making them smoothly available to them, in order to help expand their business by raising the necessary capital to develop their projects in the region.

He added, "New listings generally represent a supportive force to enhance activity in the stock market. They also play an important role in supporting companies' efforts to achieve sustainable growth by taking advantage of the many advantages offered by listing in the capital market."

Shaath pointed out that the free zones in the country include a variety of sectors, including industry, petrochemicals, transportation, transportation and cars, which will contribute greatly to diversifying sectors in the financial markets, which are currently witnessing a primary focus on real estate and banks only.

Regarding the performance of the Dubai Financial Market, Shaath said, “The market is still suffering from weak liquidity, with liquidity rates ranging between 100 million dirhams and 200 million dirhams, which prompted the index to decline in the overall performance of the market during the week.

Among the most prominent factors affecting the market decline are the financial results in some sectors, most notably the banking sector.

He added: “One of the most prominent events is the rise in (Damac )’s share from the level of 90 fils to the level of 1.18 dirhams, and closed at 1.12 dirhams, as the share rose by 17% during the week.”

Regarding the performance of the Abu Dhabi Securities Market, he indicated that liquidity increased in the market, as liquidity maintained trading with values ​​equal to double trading in the Dubai Financial Market, during the week's sessions.

Corporate stocks

For his part, financial analyst Jamal Ajaj said, “The importance of offering shares of free zone companies in the local financial markets, which was considered one of the most prominent events of the week, will contribute to diversifying sectors, providing more options for dealers, as well as attracting hundreds of investors. The newcomers, which will contribute to reviving the flow of capital and trading in the financial markets », pointing out that the inclusion of free zone companies will also give investors an opportunity to diversify risks, especially as these companies invest internally and externally.

He added that liquidity volumes are still weak in the Dubai Financial Market, and balanced to some extent in the Abu Dhabi Stock Exchange, which was the outcome of the week's trading sessions.

-

Follow our latest local and sports news, and the latest political and economic developments via Google news