Category: Featured

How to Trade in the UAE Stock Market

Dubai Gold – UAE now consider one of the fastest growing markets in the world. While still rich in oil, the UAE has become incredibly wealthy because of its extensive market liberalization and the resulting billions of foreign investment dollars it has attracted from all over the world. With the proper knowledge and right tools, you also can profit from trading stocks in the UAE.

How to Trade in the UAE Stock Market

1- Understand the UAE stock markets and economy. The United Arab Emirates is a federation of seven emirates (states) located in the southeast of the Arabian Peninsula on the Persian Gulf. The two most populous and highly capitalized emirates are Abu Dhabi and Dubai, which are also the only two emirates that have stock exchanges, the Abu Dhabi Securities Exchange in the case of the former, and the Dubai Financial Market in the case of the latter. The UAE remains a prominent member of OPEC, and although it is far less-dependent on oil exports than it was two and three decades ago, the energy sector is still an important part of the local economy. Periods of global expansion have been particularly fortuitous for the UAE because they have usually driven oil and natural gas prices considerably higher, whereas global contractions have proven especially harsh. Similarly, because of its market liberalization, it has been a primary destination for emerging market investment flows during boom times, but it has conversely been subject to large scale sell-offs when investors lose their risk appetite and decide to trim exposure to emerging markets.

2- Track the price movements of the major UAE stock indices, such as the United Arab Emirates Index, Dubai Financial Markets Index and Abu Dhabi Securities Exchange Index. Stay abreast of the news and developments affecting major, high market capitalization companies such as Abu Dhabi Commercial Bank, Air Arabia and Aldar Properties, as well as the general trends in larger sectors like consumer cyclicals, consumer non-cyclicals, energy and finance and specific industries like construction, aviation, real estate and retail.

3- Buy stocks in the UAE through your broker. Most sophisticated Western brokerages should be able to buy any stock listed on a major UAE exchange. However, because retail investment from Western countries remains rare in the UAE, many brokers will not be familiar with the companies listed on its exchanges, what the country’s currency is or how exactly to go about the transaction. They will probably request that you provide the Committee on Uniform Security Identification Procedures (CUSIP) number of the stock you’re interested in buying or some other sort of international identifier. Be sure your broker does not overcharge you when converting your U.S. dollars to UAE Dirhams (as will probably be required to invest in most UAE companies) or level an excessively high commission.

4- Open up a brokerage account with a company in the UAE, such as the Abu Dhabi Financial Services Company or Al Ain Centre for Securities Brokerage. With a local broker, you’ll have all the advantages of direct access to the UAE market at considerably lower cost than transacting through most Western brokerages, but you don’t have as many U.S. regulatory safeguards, and you likely have to accept that your capital will sit in units of UAE Dirham, potentially exposing you to exchange rate risks.

May 16, 2013
Factors behind the Increasing Prices of Gold

Gold has always been the most promising and unique kind of material one has ever seen and it has said to have effects which are optimum and optimizing in their own ways. For centuries gold has been the denotation of wealth and power and as the time modernizes, it is becoming even expensive and difficult to even have within the range of purchase.

Investing in gold however is something which people consider more than often and say it’s a wise idea. There are a number of different reasons to why this is like so.

The price of everything including the sales market of diamonds fluctuates these days and there are risks involve with it but with gold it’s totally the opposite and you should know that it has been consistent and overdriven for all these years. Here are a few factors behind the increasing prices of gold and why it has been so valuable all this time.

Spending money in gold is a profitable outcome and you should consider it more than anything because it saves an individual from the inflation and destructive aspects of the market.

When there is a rise of its value, the prices go up and the users could sell the shares out more than easily. Money always keeps on changing and differentiating from one currency to the other but with gold it is different and rather unique.

It is independent of any currency demand and requirements and anyone could buy it on the terms to which it is regulated on the foreign exchange market. Gold is a stable element to bet your money on and get the desired possible outcomes you ever imagined to achieve off it.

Another one of the main factors behind the increasing prices of gold is the fact that it is one of its kinds. It is one of the most precious metals out there and anyone to everyone would like to have some saved for their important and significant purposes. Gold is not easy to find although many techniques and strategies have been developed in that regime but it still comprises five parts of the earth’s crust for every billion portion.

Investors that are interested and compelled in dealing with gold are more reliable and consistent for you to invest in as well. You don’t have to worry about having too much gold and not being able to do anything with it because it will become fruitful at some part of your lifetime.

May 12, 2013
AED 100 billion UAE stock gains in 2013

As financial analysts gains UAE equity markets since the beginning of the year about ‬ 100 billion dirhams, noting that global reports classified the UAE as the second best performing market in the world in ‬ 2013, after it achieved an increase of ‬ 28% since the beginning of the year until ‬ 24 last April.

They pointed out that is not affected by shares of blue chip companies, especially Emaar decline in first-quarter profit and maintaining the price levels high and reached shows that investors still prefer to invest in those companies and not to sell to lock in profits, indicating an optimistic view of the performance in the coming period.

For his part, said a member of the American Society of analysts, technicians, Hossam al-Husseini, said that the performance of the local stock markets in the last week is an extension of the performance of the market since the beginning of the year, it is still the leading stocks are seeing active trading.

Husseini explained that the rise of blue chip stocks was reflected in the rise of the stock remaining in varying proportions, and, consequently, taking the market upward path led to the existence of a positive psychological state among dealers, and returned speculation on selected stocks.

Husseini attributed not affected leading stocks, especially Emaar Properties, the decline in first-quarter profit, to those heights achieved proactive stock before the announcement of the results.

Husseini predicted that the market indices maintain their current levels for a while, especially in light of the approaching tough resistance points such as the level of 2200 points to the index of the Dubai Financial Market.

He stressed that the cohesion of heavyweight stocks in the index will contribute to the stability that may peppered with a slight decline in the indicators to support the strong points such as levels of 2050 points, 1970 points to the index of Dubai.

The head of the research department and Financial Studies at Al Fajr Securities, Maha treasure, said a report released during the week of service (CNN Money) Affiliate Network (CNN) Asking the stock market in the UAE, the second best performing market in the world this year, After recording a rise of 28% since the beginning of this year until April 24 last year.

She treasure that the reasons for the rise of stock market indices local not limited to stock investors and their movements in the market which reflected optimism the future of the real estate sector, but extended to include the reports issued by the corporate credit rating as well, noting that the agency Standard & Poor’s, which raised the credit rating of the company (Emaar) to BP Plus degree, which is the highest non-investment grade, saying that the new projects and higher revenues will contribute to stimulate the company’s income.

The senior analyst stock in a company directly for financial services, Essam Abdel Alim, said that the Dubai Financial Market Index recorded an increase during the three sessions of the week affected by the positive results achieved by companies in the first quarter of this year, while the index of the Abu Dhabi market during the sessions of trading due to the high indicators five sectors.

He added that the positive reports released recently, and contributed to increased investor confidence report prepared by the Foreign Investment Office of the Department of Economic Development in Dubai, showed increasing the volume of direct foreign investments in Dubai last year by ‬ 26.5% compared ‬ 2011 to about ‬ 29.4 مليار AED, as predicted by the Director General of the Chamber of Commerce and Industry (DCCI), Buamim Hamad, to achieve a growth rate of Dubai’s economy during the current year of between 4 and ‬ 5%.

May 5, 2013
Gold fails to extend gains; weekly loss mount to Rs 350

New Delhi: Both the precious metals, gold and silver ended lower in the bullion market during the past week on sluggish demand at prevailing higher levels despite firm global trend.

Traders said investors shifted their funds from bullion to rising equity markets which kept the metals under pressure.

The domestic markets, which normally take cues from the internatonal trend, remained jittery and failed to recover. Gold in overseas maekts rose 1.8 percent to 1,489.20 dollar an ounce and silver by 2.1 percent to 24.28 dollar an ounce.

In the national capital, gold of 99.9 and 99.5 pecent purity commenced higher at Rs 28,200 and Rs 28,000 per ten grams on fresh buying. Later, it met with stockists selling on back of sluggish demand at prevailing higher levels and settled to Rs 27,750 and Rs 27,550 per ten grams respectively, showing a loss of Rs 350 each from previous week’s level.

Sovereign followed suit and declined by Rs 200 to Rs 24,000 per piece of eight gram.

On the other hand, silver ready lost Rs 900 at Rs 46,000 per kg this week on reduced offtake by industrial units while weekly-based delivery managed to close higher by Rs 160 to Rs 45,160 per kg on speculators support.

Silver coins dropped by Rs 2,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces on fall in demand at existing higher levels.

May 5, 2013
Trading the Dollar With USDX
Calculation and Use of the USDX

The USDX or the US Dollar Index is an indicator that was created only a few years ago. It is one of the main indicators used by all traders in the U.S., irrespective of whether they are trading in bonds, futures, binary options, gold or foreign currency. This is because the USDX gives a great heads up on various other trends to follow. While it is only one of the many indictors used by Forex traders, it is an extremely powerful one.

USDX – Creation an Meaning

Created in 1973, the USDX was set at a value of 100 at this time. The current value of the index indicates whether it is stronger or weaker than the US dollar than in the year it was created in. if the index is higher than 100, it indicates that the dollar is stronger and if it is lower than 100, then it means that it is weaker than what it was in 1973. The value of the index also indicates the level to which the US dollar is stronger or weaker. Therefore if it has a value of 95 percent, the dollar is weaker by 5 percent and if the value is 110, then it is stronger by 10 percent.

Factors Used to Calculate the USDX

The specific manner in which the USDX is calculated is complex. However, traders don’t need to calculate the value on their own. What they should know, however, is that the USDX is calculated based on the US dollar value vis-à-vis various other global currencies. These currencies are the Euro, the Great Britain Pound, the Canadian Dollar, the Japanese Yen, the Swiss Franc and the Swedish Krona. The index is also not a simple comparison across these currencies. The index is based on a weightage given to each of these currencieswith the Euro having the highest weight.

Using the USDX

Those who trade in bonds, currencies, gold and futures look to the USDX to make their investment decisions. This means that even when traders are not dealing in USDX futures, they are eager to know the direction and the rate at which this index is moving. There are various reasons for this.
- Those who trade in gold know that falling gold prices are highly correlated with the USDX. This means that one can almost predict the manner in which the gold rates will go with the help of this indicator.
- Those who deal in bonds are aware of the manner in which the USDX is related to bond yields. When there is an imminent global crisis, the demand for the USD increases. This makes the USDX higher in value, something that also indicates a lower bond yield.
- For Forex traders, the USDX is an important indicator since it shows the strength of the dollar in relation to the global currency market. Since the USDX is calculated with a high Euro weightage, it is said that the indicator is immensely helpful for those dealing in the USD/EUR currency pair.
May 2, 2013
Dubai’s index rises above 2000 points for the first time since 2009

Dubai Mercantile Exchange closed above the 2,000 points level on Tuesday for the first time since November 2009, supported by optimism on corporate results also closed most of the other markets in the Gulf to rise as well.

The Dubai Financial Market index rose 1.8 percent to 2021 points, breaking the psychologically important barrier to its gains since the beginning of the year 24.6 percent. The index has achieved the best performance in the region in 2013, thanks to growing optimism about the emirate’s economy as the real estate market recovers from the crisis experienced in 2009-2011.

Trading volume on Tuesday to 255.1 million shares.

The said Marwan syrup vice president and chief trader بجلف Mena Investments “Beyond the level of 2000 points, with the values of trading it would be a good step towards the second big rally of the year.”

Attention was focused in trading Tuesday on the small-cap stocks as shares rose Air Arabia 4.1 percent and Dubai Investment shares 3.6 percent. The two arrows were the most actively traded in the market.

The shares continued to rise as financial institutions rose Emirates NBD 2.5 percent to its highest level in nine months, while the Dubai Islamic Bank shares two percent shy of its highest level in three years.

In Abu Dhabi, has made banking stocks also performed well, rising Abu Dhabi Commercial Bank 4.9 percent, its highest closing level since August 2008, while the Union National Bank 4.2 percent.

Shares of First Gulf Bank 2.3 percent to 15.40 dirhams, surpassing the level of technical resistance, according to Global Investment House (Global).

Global said in a note “If you have been trading above 15.17 AED expect to continue to rise the price target we set at 15.63 and 16.20 AED in the coming sessions.”

The index rose Abu Dhabi’s 1.1 percent to its highest close since October 2009.

After the market closes National Bank of Abu Dhabi has announced the largest bank in the United Arab Emirates by market value, it achieved an increase of 35.5 percent in net profit for the first quarter of the year, stressing the strong trend of the results of the banks.

The bank’s net profit reached 1.41 billion dirhams ($ 383.9 million), surpassing the average forecast of 1.09 billion dirhams But that jump came thanks to income from investments and fees, while lending growth remained modest

April 23, 2013
UAE economy growth rates more than the world average

UAE’s economy growth rates than the world average growth rates him draws the attention of investors. Where are stronger macroeconomic fundamentals than it was since the beginning of the global financial crisis, and the expectations refer to owning this economy conservative elements of the driving forces for growth.

She economic advisor to Al Fajr Securities, Maha treasure, in its weekly report on domestic capital markets that in addition to new projects, which is more ambitious than in the past, has become the ability to attract capital financing and investment easier and less expensive than ever before.

She Treasure: reports indicated over the past week to issue Emirates markets instruments Gulf during the first quarter of this year versions valued at 13.5 billion dirhams (3.7 billion dollars), which represents 40% of the sales of instruments in the GCC during the period amounting to 9.34 billions of dollars.

Revenues fell instruments in the United Arab Emirates a significant decline over the past year, which enabled the Government of Dubai and many major companies and banks to refinance its financial obligations بطروحات the new less expensive, and received a large turnout by investors. The average yield instruments in the United Arab Emirates 3.43% in the middle of this month, down 72 basis points compared to the same period of last year.

It also showed the latest statistics issued by the Central Bank last week that the non-resident deposits with banks operating in the country rose by 21.68 billion dirhams, and by 19.3% in 2012, which means that banks operating in the country has been able to attract the financial flows from abroad because of the improved investment climate and the state of stability taking place in the UAE.

The performance of real estate markets

The report added: For the real estate market, according to the latest statistics issued by the Land Department in Dubai, has grown in value of the actions of residential units in Dubai during the first quarter of this year increased by 69.6% compared to the same period of last year.

The latest report from Jones Lang LaSalle to achieve the real estate market in the Emirate of Dubai in great demand in the first quarter, as an extension of its strong performance in 2012, and a report of Jones Lang LaSalle all sectors of the real estate market in Dubai for the first time since mid-2008 at the stage of recovery in the cycle This own market, also predicted increased demand for high-quality species, which will lead the continuous improvement of operations in performance in the coming period.

She Treasure: we read last week in several newspaper articles attached to the return scenes queues to buy real estate and Mira units within reconstruction projects – and an invitation for real estate companies to adopt regulatory measures realized by justice opportunities for local and foreign investors.

Another report showed higher average rents in Abu Dhabi during the first quarter by about 8%, especially for the luxury real estate sector, and the improvement also reflected on the sales market, where prices rose some average reached 13.5%, according to the report, Asteco.

The most profitable

Abu Dhabi market was the most profitable securities in the region during the first quarter of this year to achieve an increase of 15%, as the Dubai Financial Market occupied the third place on the list, up 12.7% over the same period.

He led banks and real estate sector price rises during that period, the real estate sector was the best performer on the sectoral level, where he scored index – issued by the Securities and Commodities rose by 21.5% during the first quarter followed by the banking sector, an increase of 18.19%.

April 20, 2013
Importance of Support And Resistance points In Forex Trading ?

Points of support and resistance are two of the most important concepts of technical analysis and the most important thing is looking for stores in the chart are two of the most obvious things once a quick look at the chart of the same coin that you can learn the points of resistance and support for the currency.

What are the points of resistance and support?

Resistance: is the price, which is difficult for the currency to rise above it, and this will help you in technical analysis of the currency.

currency may begin to rise hours behind the hour is getting priced on an ongoing basis, but when it reaches a certain price begin to fall again and then rise again and when you reach for the same price previously belonged to drop, and so many times and for several days, the higher the price of the currency and arrived to this Price returned and dropped again, the it is difficult to notes on the currency that exceed this price, such a price is called the resistance price, a price that prevents – Resists – the currency to rise above it. The points can find out easily when checking resistance in the graph currency.

Note that the candles go up on the charts, but when you reach the 1.0030 rate back down and repeat it more than once.

Using the program can graph to draw a line illustrates this point and that is the point of resistance for the euro is difficult for the euro to rise with him.

Note that the price if it exceeds the previous resistance point it rises to up to 1.0145 and then return rate to decline more than once. Price latter can be considered a second point of resistance for the price.

Resistance point is like impediment that stands in the way of price and prevents further rise, which indicates that demand for the currency at least when fetch up to this point and is not a lot of people willing to buy the currency at this price, and when demand is low back price decline ..

Resistance point is the price at which the demand for currency is less than supply them, does not mean that the price can not rise above the point of resistance might even beyond, but before doing so have been dropped by several times, and whenever the number of times that he could not price to go beyond the point of resistance, the more it meant that the point of the strongest resistance strong resistance.

What’s important to discover the point of resistance?

When you know that the price when it rises and reaches a certain price and then come back and drop means that when you see that the price of currency has become close to the point of resistance you expect for the price to come back and drop then, when the price reaches a point of resistance will sell the currency at this price because you expect it to go down if dropped actually will buy again.

Support Support point: is the price, which is difficult for the currency to fall without it.

The low price of a currency-hour behind-hour but when the price reaches a certain point back and rise again and repeated it several times, we call this point point support that is, they point at which “supports” the price and prevent it from declining more than that, which indicates that the currency when the fall to be up to the price support are in demand by a lot of people and they become willing to buy at this price, it does not mean that the price can not be reduced from the point of support but also means that the price finds an obstacle to further decline when the price reaches a point of support, the more the number of times that the price could not fall from the point of support, the more it means that the point of the strongest support strong support.

Figure notes that candles go down but when you reach the 0.9905 rate go up again.

Using the graph can be plotted line shows that as you can see in the figure, noting that the price that has fallen from the point of previous support returns and rising at the rate of 0.9780 can therefore be regarded as price last point of support again. Similarly, if the price dropped from the point of support second rise again when up to the price of 0.9700 So is this third point of support price to the price of the euro.

There are a lot of tools that you can use in the program graphs, you’ll get from the brokerage firm for free or for a monthly subscription, enables these tools to draw lines and write notes and change colors and zoom in and away and a lot of other tools that help you analyze the chart format that suits you and relieves .

There will be guidelines and instructions help you to do this, and in any case work is graphic program does not need any special skills, but is available for all and a little practice, you’ll find that dealing with the issue is very simple.

What is the importance of the discovery of points of support?

When the price drops and approaching the point of support is likely that he will return to rise again, so when the price of the currency at the point of support we can buy this coin because we expect that the price will rise after that.

Currency direct and indirect again

It is very important that you know that the orders for Lin and the Swiss franc be reversed orders of the euro and the pound.

We have said as a general rule Background:

In the euro or pound sterling

Candles rise in the graph refers to the high price of the euro or the pound.

Low candles in the chart indicate to lower the price of the euro or the pound.

In the yen and the Swiss franc

Candles rise in the graph refers to the decrease in the price of the yen or the franc.

And low candles in the graph refers to the rise in the yen or the franc.

Here you can learn how to deal in the case of the approach of the currency of support or resistance line, you can depend on the following rule:

General rule

Resistance line: is the line which limits candles – or bars – in the graph from the top and putting her climb more.

Support line: is the line which limits the candles in the chart from the bottom and hampered for more downside.

When touches candles line resistance resistance is expected to fall to the bottom so:

Currency in direct

We sell the currency when it approached resistance line.

In indirect currency

We buy the currency when it approached resistance line.

When touches candles line support support is expected to rise to the top so:

Currency in direct

We buy the currency when it approached the line support.

In indirect currency

We sell the currency when it approached the line support.

April 20, 2013
Dubai Financial Market (DFM) morning dealings start gains amounted to 18 points

Dubai Financial Market (DFM) index started early morning dealings on the slight gains of 0.90%, adding to his tally 17.75 points and reaching the level of 1985.67 points.

And trading volumes reached after an hour of the beginning of the meeting about 47 million shares, came through 699 transactions, buying and selling, and trading amounted to about 60.2 million dirhams.

And most active market values the the Arab share trading value of AED 18 million, heel Arabtec values of 9.2 million dirhams, then Emaar trading value amounted to 7.4 million dirhams.

While Emaar shares rose 0.95% adult AED 5.300, followed by Arab, an increase of 5% and the price of 0.917 dirhams.

As for retreats, UAE shares came down by 0.46% and the rate is 4,300 dirhams, heel Ajman Bank shares down 1.3% and the price of AED 1.530, and then share HITSTELEC a loss rate of 0.13% and the price of 0.779 dirhams.

The Dubai Financial Market General Index ended the trading session yesterday on the semi-stable, a slight loss of 0.04 points to close at 1967.92 points.

April 17, 2013
Dubai Stock Exchange rises to highest level in 40 months

DIFX rose to its highest level in 40 months on Tuesday as investors continued betting on strong results for the first quarter of the year procurement market while also stepped Arabia infiltrated strong technical resistance.

The Dubai Financial Market index rose 2.4 percent, its highest closing level since November 2009 and up 21 percent since the beginning of the year.

And exceeded the previous market peak in 2013 which was recorded in late February. At this time of the year investors typically sell for a profit after dividends exchange market has fallen already in March, but the rise in April, raising the morale of dealers

And Emaar Properties rose 2.1 percent and Dubai Islamic Bank (6.7 percent).

And jumped Drake & Scull Construction 7.5 percent in heavy trading as investors bet that the company could be a takeover target as traders said.

Abu Dhabi’s index rose 0.6 percent, its highest closing level since October 2009

April 10, 2013