Dubai successful bid to host the World Expo 2020 lifted the emirate's index to a new five-year high on Monday
Investors in UAE stocks are expected to adjust their portfolios ahead of year-end earnings, focusing on companies expected to pay more generous dividends, Reuters said.
Dubai successful bid to host the World Expo 2020 lifted the emirate's index to a new five-year high on Monday. It is also up 84.1 percent year-to-date to be among the best performing markets globally.
Technical indicators and general sentiment is bullish but small-caps with little fundamental value could see a pull back, analysts say.
"I'm expecting investors to start booking profits and start consolidating for Q4 numbers and focus on high-paying dividend-yield names such as Air Arabia and Dubai Investments," says Marwan Shurrab, fund manager and head of trading at Vision Investments.
In Abu Dhabi, shares in bourse heavyweight Etisalat may see increased buying interest after a source told Reuters the firm is resurrecting talks to sell its Sudanese telecom arm Canar to Kuwait's Zain.
Etisalat took an impairment of AED459m ($125m) against Canar in 2012 and may be eager to sell what is a peripheral investment for the United Arab Emirates' firm.
Elsewhere, shares in Bahrain Telecommunications Co (Batelco) may be under selling pressure after Cable & Wireless Communications said on Monday the sale of its business in the Seychelles to the Bahraini operator has fallen through.
Batelco shares slumped to an all-time low last week.
Global cues are weak. Asian shares eased on Tuesday as unexpectedly strong US factory activity bolstered expectations the Federal Reserve will soon trim its stimulus.