• Home
• /
• Business

Lebanon peace prospects lift indices

While the Abu Dhabi Index gained 0.89 per cent to 3,503.4, the national benchmark, NBAD General Index gained 1.56 per cent to 11,436. “As the ceasefire entered the third day with Lebanese troops taking charge of South Lebanon, market is expecting economic activity to pick up soon. “The threat of a regional conflict is fading. That is good news indeed,” said a DFM broker.

The change in sentiment was evident in the market volumes and turnover. Across the two bourses, the UAE market traded more than 170 million shares worth Dh1.46 billion as Dubai Financial Market reported a turnover of Dh1.36 billion. The Dubai index has gained 4.7 per cent since the ceasefire was agreed three days ago. The index is still down 3.2 per cent since July 12, when the hostilities began.

DFM surge was led by property major Emaar which gained 4.7 per cent (55 fils) to close at Dh12.25. The counter traded a large volume of 82.9 million shares worth Dh1.01 billion. “Emaar is making a dramatic turnaround. The share has gained about 15 per cent in a week. Although profit taking could upset the rally, it has an upward potential of Dh14 in the current surge,” said an analyst.

Islamic mortgage lender Amlak gained 1.8 per cent to Dh6.16 as Aramex and du gained 1.5 per cent and 1.7 per cent respectively. Eyeing the reconstruction contracts in Lebanon, investors have pinned their hopes on the rising prospects of cement and property shares. While Union Properties gained 2.47 per cent, Arabtec closed 1.25 per cent up at Dh4.05.

In the banking sector, Dubai Islamic Bank and National Bank of Dubai gained 1.5 per cent and 3.2 per cent respectively. ADSM-listed bank shares reported mixed results yesterday with First Gulf Bank and Abu Dhabi Islamic Bank posting modest gains as Abu Dhabi Commercial Bank closing 0.5 per cent down at Dh7.66. In the services sector, Etisalat gained 2.5 per cent to Dh18.8. The cement rally picked up momentum yesterday with Gulf Cement and Union Cement gaining 3 per cent and 1 per cent respectively. Expectations are rising on building materials and construction companies. While RAK Ceramics gained 7.3 per cent to Dh6.4, National Cement closed 3.2 per cent up at Dh16.