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UAE's stock indices hit new record highs

The big gains in the share prices of Emaar and Etisalat boosted the key indices. The NBAD General Index gained 270 points to close at 17,783.77 points while the DSI was marginally up by 1.57 points to close at 1063.02 points. Trading on the first day of the week ended on a buoyant note with total market turnover gaining 32.2 per cent to Dh3.98 billion. The service sector subindex gained over 1050 points while the banking sector subindex was down by 206 points.

Telecom major Etisalat gained over 6 per cent to close Dh2.45 up at Dh42.35. “Although the news of Etisalat winning the bid was not out before the market closed, the expectations were high. The news of Etisalat getting prequalified to bid for 26 per cent stake in the state-run Pakistan Telecommunications had boosted the market sentiment in favour of the scrip. The strategic stake in PTCL will give Etisalat a foothold in yet another major regional market,” said an analyst.

On DFM, the daily turnover was up by 52 per cent. In over 7500 deals the market traded 117.6 million shares worth Dh3.54 billion. While the service sector accounted for more than 80 per cent of the market volumes, the Emaar counter traded 60 million shares worth Dh2.45 billion. The scrip gained Dh2.15 to close at a new 52-week high of Dh40.40. “Emaar's decision to increase its capital and hike the foreign investment limit to 49 per cent is having a major impact on the stock. Overnight the stock has acquired the status of a global blue chip,” said a broker.

While most gains came from leading service sector stocks including Emaar, Etisalat and Shuaa Capital, the key banking sector shares including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates Bank and National Bank of Dubai closed lower. Amlak and Union Properties slipped by 2.5 per cent and 3 per cent at Dh13.15 and Dh9.48, respectively. While the Arabtec closed 14 fils down at Dh6.20, Tabreed closed Dh3.40 down at Dh55.20.

In the banking sector, DIB and EBI shares slipped by Dh8.45 and Dh2.20, while the NBD scrip fell by Dh6.55 to close at Dh228. On ADSM, the banking sector face big reversal yesterday with all leading banking sector scrips, with the lone exception of National Bank of Abu Dhabi heading south. The ADCB share slipped Dh1.20 while the Abu Dhabi Islamic Bank and First Gulf Bank were down by Dh3.10 and 55 fils respectively.

Buoyed by the overall bullishness in the market, the EMNEX gained 189.40 points to close at a new all-time high of 11426.66 points and the NBAD ESM index closed 103 points up at 7,403.60 points.