DFM up a third straight day, hits fresh 14-week high

DUBAI — UAE stocks rose for a third consecutive day on Tuesday as investors bought shares on speculation that markets will rally after Ramadan ends.

By Muzaffar Rizvi

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Published: Wed 8 Sep 2010, 10:49 PM

Last updated: Mon 6 Apr 2015, 5:14 PM

Bluechips reversed early losses in Dubai and closed the last trading day before Eid on positive note. The Dubai Financial Market’s General Index hit a new 14-week high as investors shrugged off Dubai Holding unit delaying payment on a $555 million loan for a second time.

The benchmark index rose 1.49 per cent to 1,592.24 points, its highest finish since May 30. Traders exchanged 156.32 million shares on the exchange, almost triple the one-month daily average of 59 million.

Emaar Properties rose 1.94 per cent to Dh3.68, the highest since May 23 while Emirates NBD gained 2.8 per cent to Dh2.62, the highest since June 24. Dubai Financial Market and Arabtec advanced 3.75 and 2.22 per cent, respectively.

“It’s the last week of Ramadan effect, where you have investors picking up stocks in anticipation of a post-Ramadan rally,” said Hassan El Salah, deputy head of institutional equities at Al Ramz Securities LLC, an Abu Dhabi-based brokerage.

“Historically, the market has rallied the last two weeks of Ramadan,” El Salah added.

Ramadan, which began on August 11, ends this week with the celebration of Eid. The DFMGI surged 11 per cent during the last two weeks of Ramadan last year and Abu Dhabi’s benchmark index rose 7.3 per cent.

“A lot of people who took positions over the past few days seem happy to hold, so day traders may be changing their time scale, which would be good for the market,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

“Dubai Holding’s announcement doesn’t seem to have had any impact,” Wakeman added.

In Abu Dhabi, Emirates Telecommunications Corporation, or etisalat, gained as much as one per cent to Dh10.15 and closed at Dh10.10. The company said yesterday it is studying investment opportunities in India, including in Idea Cellular Ltd.

The ADX General Index climbed 0.57 per cent to 2,531.72 points, the most since July 22.

Aldar Properties advanced 2.5 per cent and Abu Dhabi Commercial Bank gained 2.75 per cent.

In terms of value and volume, First Gulf Bank remained on top as its 17.83 million shares worth Dh243.07 million were traded on the exchange.

muzaffarrizvi@khaleejtimes.com



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