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Dubai Financial Market jumps 3.6pc

DUBAI — The UAE main stock markets continued their strong rallies yesterday, pushing the indices to new 18-month highs. Spurred by strong interest from foreign institutional investors The Dubai Financial Market (DFM) jumped 3.58 per cent to 5,726.27 and the Abu Dhabi Securities Market (ADSM) inched up 0.34 per cent to 4,439.83.

The DFM was the biggest gainer in the Gulf region, closing at its highest since April 25, 2006. About 3.4 billion shares traded on the index, more than eight times the six-month daily average, according to data complied by Bloomberg. Foreign investors last week bought shares listed on the DFM worth Dh6.9 billion ($1.9 billion).

Commenting on the DFM's performance Salah Shamma, associate vice president of Algebra Capital said that foreign financial institutions were helping to boost the market, adding that the recent round of roadshows by companies such as the DFM Company, had heightened interest. "The market has gone up a bit too fast but there is still value in it," he said

Tamweel, the region's largest provider of Islamic home finance, added 14.94 per cent to Dh7.08. Deyaar, the real estate development arm of Dubai Islamic Bank, jumped 14.88 per cent to Dh2.78. It is closed to foreign investors. Deyaar said on Monday it expected to clinch a $5 billion deal this year to build a township in India with Ansal Properties and Infrastructure Ltd.

Air Arabia, the only publicly traded airline in the Gulf, saw its shares jump 10.23 per cent to Dh1.94. On 4 November it reported that net income for the period more than tripled. Emaar, the largest publicly traded developer in the Middle East, climbed 2.9 per cent to Dh14.2.