UAE stocks to move up after post-Ramadan correction

After recording an unexpected rally during the month of Ramadan, the UAE bourses – Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) – are expected to witness a correction before strengthening again on positive economic news.

An anticipated profit booking during the last week of the holy month did not occur, pleasantly surprising many analysts. The level of consumer spending during Eid usually prompts investors to cash out just before the festival.

"After Eid, there will be a correction. Finance and real estate stocks will drop, while energy and consumer staples shares will either surge or continue flat in range-bound trading. This is expected to continue until third-quarter results are posted," said Taimur Saadat, senior financial analyst at Arab Capital Markets Resource Centre.