5 incentives that push local financial markets to achieve “billion-dollar” gains

Financial analysts have identified five new factors that stimulate local financial markets to achieve new billion-dollar gains during the sessions of the remaining months of this year, explaining that the most prominent of these catalysts are the expectations that leading listed companies will disclose strong business results for the third quarter of this year, and the great activity witnessed by the sectors. Non-oil sectors, especially the real estate and tourism sector, in addition to the state’s announcement of the largest budget in its history, in addition to the economic agreements concluded with major countries related to the technology and artificial intelligence sectors, and finally the trend to further reduce interest rates by the US Federal Reserve.

They told Emirates Al-Youm that the “geopolitical” situation did not affect the movement of local financial market indices, which began to rise during the past week, noting that the return of calm to the region is important for positive interaction with these stimuli.

In addition, the Dubai Financial Market index rose during last week’s sessions by 0.8% to 4441 points, and the Abu Dhabi Securities Market index rose by 0.9% to the level of 9261 points.

During the week, the Dubai Financial Market achieved gains amounting to 4.909 billion dirhams, and the Abu Dhabi Securities Market’s gains amounted to 39 billion dirhams, with a total gain for the two markets amounting to 43.909 billion dirhams.

For his part, the economic and investment advisor, Dean Kanaan, told Emirates Al-Youm, “Calm has returned to the local financial markets, and this is a good thing, with indicators continuing to maintain their gains.” He pointed out that there are entitlements and incentives that will push the local financial markets to more positive performance during the remaining months of this year.

He indicated that the most prominent of these incentives are the business results for the third quarter of this year, which most investors are eagerly awaiting, amid expectations that the banking sector will disclose good business results, in addition to strong results for the real estate sector due to its historical sales, which will reflect positively on profits, and cash distribution plans for… Contributors.

Kanaan stressed that the local financial markets are currently in a period of redistribution of equity concentration by portfolio managers. He explained that among those strong stimuli that the local financial markets are likely to react positively during the coming period – if geopolitical factors calm down – is the trend to reduce interest rates, which may lead to raising stock gains to more than current levels.

He indicated that among those incentives are also the economic agreements concluded by the state with the United States in many fields of technology and artificial intelligence, which will benefit the results of the work of companies specialized in the same field, noting that among those incentives is also the government’s announcement of the largest budget in the history of the state. With a value of 71.5 billion dirhams, with non-oil sectors expected to grow by 5.3% by next year.

For his part, the chief market analyst at Century Financial, Aaron Leslie John, said, “The general index of the Dubai Financial Market has shown a strong growth of 9.3% since the beginning of the year,” indicating that the strength of the economy supports the positive performance of the Dubai index so far, while The Abu Dhabi Securities Exchange is currently experiencing due profit taking.

The financial advisor, Mahmoud Atta, stated that the listed companies’ disclosure of business results for the third quarter of the current year will contribute to improving the overall performance of the local financial markets, pointing out that the results will be a major factor in increasing confidence, especially in light of expectations that they will be stronger than the previous two quarters of the year. 2024.

He stated that market indices have been in a horizontal zone for several months, with very narrow fluctuations, due to the regional situation, which did not negatively affect performance, but it delayed stocks moving forward strongly.

He stressed that the successive implementation of large transactions in the Abu Dhabi and Dubai markets confirms the desire of investors to start investing in major listed companies.

• 4.909 billion dirhams in gains achieved by the Dubai Financial Market within a week.