Dubai: UAE stocks may consolidate this week with a positive bias as more banks come out their full year results.
On Thursday, the Dubai Financial Market General Index ended 0.86 per cent higher at 3,882.93, after losing more than one per cent in the previous three sessions amid low volumes.
“People would be more active next week, when we have more bank results,” said Sanyalaksna Manibhandu, Manager of Research, NBAD Securities.
Banks like Dubai Islamic Bank, First Gulf Bank, National Bank of Abu Dhabi, Abu Dhabi Commercial Bank will announce their results after Emirates NBD, the largest bank in the UAE by total income and branch network, and Mashreq.
“The outlook is more positive for markets as we saw how Emirates NBD lifted its dividend. More banks are expected to lift their dividend so that would be an encouragement for investors to invest in those banks,” said Manibhandu.
Emirates NBD reported net profit of Dh5.1 billion for the full year, up 58 per cent compared to 2013.
Total income for the year 2014 grew by 22 per cent to Dh14.4 billion. Net interest income grew 17 per cent to Dh9.5 billion as asset growth was focused on higher margin retail and Islamic products. The bank recommended a 35 per cent dividend compared to 25 per cent last year.
Still risky
“Market has been struggling to reach the resistance level of 4,000. If DFM index touches risky support of 3,710, we would go down further next month,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding, “I advise investors to hold and not to buy.”
The Dubai index witnessed massive volatile swings at the end of last year after crude oil prices fell more than 50 per cent. In early December, the index gave away all its gains registered in 2014 only to end the year 11 per cent higher.
Abu Dhabi Securities Exchange General Index ended 0.36 per cent lower at 4,526.92.
“ADX index is unable to approach the resistance level 4,676, we will go down further if we breach support 4,269,” said Al Ashri.
“Arabtec touches Dh2.74, then this would result in index going down strongly,” said Al Ashri.
Arabte ended trade at Dh3 on Thursday.
Elsewhere in the Gulf, Qatar exchange index ended 1.27 per cent lower at 11,698.86, while Kuwait Stock Exchange Index ended steady at 6,662.81 on Thursday. Muscat Securities 30 index ended 0.10 per cent higher at 6,644.51. Bahrain Bourse All Share Index ended 0.34 per cent lower at 1,428.65.
Saudi succession
The Tadawul index would be closely watched after the death of King Abdullah bin Abdulaziz. Meanwhile, King Salman bin Abdulaziz, who succeeds Abdullah on the throne, said he would maintain his predecessor’s policies.