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DFM leads rally in Gulf markets

The Dubai Financial Markets’s General Index led the rally in the Gulf markets and jumped to 10-month high as trading volumes hit a near two-year peak levels. The benchmark index surged 2.71 per cent and closed the day at 1,676.49 points, its highest close since April 2011. Out of 29 stocks traded, 22 posted gains while only five declined and two remain unchanged.

About 705.31 million shares traded on the exchange yesterday as investors invested in large-caps stocks. Emirates NBD soared 5.81 per cent to Dh3.28 and Emaar Properties rose 3.29 per cent to Dh3.14.

“The UAE markets remained buoyant with rising volumes. Dubai is now up 23.8 per cent for the year, with turnover rising above 700 million for the first time since April 2010. This surge in liquidity is key for local markets to maintain recent momentum,” Ibrahim Masood, Portfolio Manager, Mashreqbank, told Khaleej Times.

The Dubai Financial Market Companies’s shares surged 8.49 per cent to Dh1, Arabtec rose 2.30 per cent to Dh3.122 and Air Arabia climbed 0.67 per cent to 0.75 fils.

The Abu Dhabi Stock Exchange’s General Index rose 1.28 per cent to 2,571.58 points, a five-month high. Trading volumes also increased to 184.14 million from 160.63 million shares traded on the weekend.

Property stocks gave support to the main index. RAK Properties and Waha Capital surged 7.89 per cent and 6.15 per cent, respectively. Etisalat fell 0.21 per cent to Dh9.50.

Aldar Properties rallied 4.6 per cent and remained the most active share on the exchange as investors exchanges its 43.47 million shares worth Dh49.86 million yesterday.

In banking sector, First Gulf Bank and Abu Dhabi Commercial Bank climbed 4.7 per cent and 4.6 per cent, respectively.

“The DFM and ADX extended recent gains as investor confidence continues to increase. The rally is now broad based across sectors and today tier 1 names Emaar, FGB etc performed strongly. The strong oil price continues to support. I would expect some volatility as profit-taking is likely, however, overall strength is expected to continue,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s Asset Management Group, told Khaleej Times.

In the regional markets, Saudi shares rose 0.18 per cent at 7,088.48 points, its seventh day of gains. Qatar’s QE Index increased 0.5 per cent to 8,776.82 points and Oman’s MSM 30 Index advanced 0.35 per cent to 5,716.28. Bahrain’s BB All Share Index retreated 0.91 per cent to 1,143.64 points.

—muzzaffarrizvi@khaleejtimes.com