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Mon 2 Dec 2013 11:54 AM

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Dubai stock market bullish after Expo win

The index reached a high of 3,020 last week after the city won the right to host the 2020 event

Dubai stock market bullish after Expo win

Dubai's market could rise further on Monday after breaking through key chart resistance at 2,900 points last week after the emirate won the right to host the Expo 2020 world fair, Reuters said.

Although the index receded significantly from an intraday high of 3,020 to close at 2,946 points last Thursday, overall mood is likely to remain bullish in the short term, analysts say.

"Profit-taking seen on the gap up levels was natural and is healthy for the markets," NBAD Securities said in a note.

"Any corrective rally if seen may bring buying on lower levels and should challenge the previous highs again."

In neighbouring Abu Dhabi, however, the index faces profit-taking, especially in the property sector, and is likely to trade sideways, the brokerage said.

The president of the United Arab Emirates on Sunday announced an extra AED20bn ($5.5bn) of spending on approved development projects and launched a new scheme to build 10,000 houses for UAE citizens.

Elsewhere, Egypt's bourse could gain further after turning around on Sunday following a week of losses.

However, the country's political transition was pitched into uncertainty on Sunday when a draft constitution was amended to allow a presidential election to be held before parliamentary polls, indicating a potential change in the army's roadmap.

Egyptians are expected to vote on the proposed constitution this month and the stock market's upturn has largely been driven by local retail investors who are hoping for a smooth transition to democratic civilian rule.

On global markets, Asian shares edged lower and the dollar gave up some of its recent gains on Monday, as investors cautiously awaited key US data this week.

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