Dubai hits 4-month high

DUBAI — UAE bourses on Sunday continued the bull run as investor bought under valued stocks. Dubai Financial Market’s General Index hit a four-month high as volumes surged due to bullish sentiments prevailed after Dubai World debt deal and the inclusion of the UAE in the FTSE Group emerging market index.

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Published: Mon 20 Sep 2010, 11:01 PM

Last updated: Mon 6 Apr 2015, 5:17 PM

Property shares lifted the benchmark index, which rose 2.17 per cent to 1,682.82 points, its highest close since May 20. Out of 27 stocks traded yesterday, 22 posted gains while two remain unchanged and three declined as investors exchanged 238.95 million shares worth Dh430.96 million on the exchange. Dubai Investment Company was the top gainer as its shares climbed 7.56 per cent to 0.97 fils. Aramex shares soared 5.95 per cent to Dh1.96 and Dubai Islamic Bank surged 4.63 per cent to Dh2.26, were other major contributors to the index.

“It is still a continuation of the strong performance we saw last week, it is linked to finalisation of Dubai World’s debt issue with its creditors or the inclusion in the FTSE emerging market index,” Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments, told Reuters.

FTSE confirmed the classification of UAE as a “secondary” emerging market within its global equity index series on Thursday, which the index provider says is the first time the country has been added in a global equity universe. “At the same time there is interest from investors to build positions ahead of the close of the third quarter,” Shurrab added. In the real estate, Emaar Properties led the rally and advanced 1.58 per cent to Dh3.85. Arabtec and Union Properties rose 2.13 per cent and 1.05 per cent, respectively.

In the banking sector, Emirates NBD and Shuaa Capital gained 2.56 per cent and 2.02 per cent, respectively. “If you look at those stocks performance, they are among the worst performers this year so it’s normal to see them attracting more liquidity now,” Shurrab said.

ADX shines

Abu Dhabi Securities Exchange also extended the positive sentiments and closed higher. The benchmark index advanced 25.66 points, or 0.98 per cent, to 2,632.27 points. Property and banking shares staged a rally and boosted the sentiments on the exchange.

Abu Dhabi Commercial Bank surged 7.14 per cent and closed the day at Dh2.25. Waha Capital also advanced 7.04 per cent and finished the day at 0.76 fils.

Out of 33 stocks traded on ADX yesterday, 23 posted gains while seven remain unchanged and three declined as investors exchanged 86.82 million shares worth Dh143.62 million on the exchange. In the coming weeks, investors will hope to at least consolidate the current levels, although Shurrab said too much retail activity could trigger some pressure on the market’s performance.

“It is mostly retail activity now, which is not benefiting the market because it will create an overbought situation and you will see selling pressure testing the market,” Shurrab said.

In terms of value and volume, Aldar Properties remained on top as its 25.02 million shares worth Dh61.83 million were traded on the exchange.

muzaffarrizvi@khaleejtimes.com



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