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Major indices continue to rally

DUBAI — The UAE main stock indices reached fresh 18-month highs yesterday, following the previous day’s strong performance. The Dubai Financial Market (DFM) closed up 2.29 per cent at 5,528.29, its highest close since April 26, 2006 and the Abu Dhabi Securities market (ADSM) general index rose 0.97 per cent to 4,424.63.

The gains are reportedly fuelled by increased interest in the region by foreign institutional investors.

The DFM was paced by Dubai Investments which rose 4.5 per cent to Dh5.80. Emaar Properties, the region’s largest publicly listed property developer, added 1.47 per cent to Dh13.80. Grand, a real estate developer, jumped 15 per cent to Dh5.29. Yesterday the company announced it had signed a contract with the National Bank of Dubai for investment, according to a posting on the DFM website.

Tamweel, the UAE’s largest provider of Islamic home finance products, saw its shares gain 7.3 per cent to Dh6.16. Deyaar, another real estate developer and an arm of Dubai Islamic Bank, also made gains yesterday, climbing to 5.67 per cent to Dh2.42.

Real estate companies listed on the ADSM also rallied significantly. The real estate index Aldar Properties rose 5.6 per cent to 1.281.02 points with Aldar Properties and Sorouh Real Estate surging ahead. Aldar added 9.83 per cent building on gains of more than 154 per cent this year to Sunday’s close. Sorouh rallied 7.43 per cent and is up more than 180 per cent this year.

Commenting to Reuters, Hamood Abdulla Al Yasi, general manager at Emirates International Securities said: “There is confidence in the markets. The P/Es are good, oil prices are high, interest rates are dropping and the economy is booming. International mutual funds and hedge funds are really transferring money here.”