By: Mahmoud Gamal
Dubai – Mubasher: The indices of the UAE stock markets are ready to break main resistance levels amid gaining momentum on the back of Emaar Development’s intention to distribute exceptional cash dividends.
Moreover, investor optimism about listed-firms’ upcoming projects, especially after Aldar Properties has established a new subsidiary, will help to boost the UAE’s twin bourses, analysts told Mubasher.
The Dubai Financial Market’s (DFM) general index shed 0.59% to close the last week at 2,809.87 points, while the Abu Dhabi Securities Exchange (ADX) registered a drop of 0.33% to 4,934.44 points.
The local markets are expected to see a bullish trend following the Hijri new year holiday.
The biggest beneficiary
Ehab Rashad, CEO of Al Safwa Mubasher Financial Services (MFS), said that Emaar Development, a subsidiary of Emaar Properties, announced it will distribute cash dividends, which will positively impact the local markets, mainly the DFM.
Emaar Properties will be the biggest beneficiary of the dividends that will consequently be reflected on the company’s profits for the fourth quarter of this year, Rashad highlighted.
He also added that this will push the DFM-listed company to distribute new dividends for the fiscal year 2018.
On Wednesday, Emaar Development’s board of directors has proposed the distribution of AED 1.04 billion in cash dividends, or 26 fils per share, to shareholders, accounting for 26% of share capital. The general assembly is set to discuss this proposal on 17 October
The DFM has seen a downward trend last Wednesday as Drake and Scull International (DSI) has decried reports on a potential dissolution of the company, Rashad indicated, noting that Emaar’s dividends will not let these negative news impact the market this week.
He projected retail investors to resume trading in the DFM this week, whereas institutional investments are likely to resume in the ADX following the establishment of Aldar’s new subsidiary.
Translated by: Mai Ezz El-Din
