Dubai bourse extends gains as investors cheer Dewa listing plan

Dubai’s stocks sustained its upward momentum on Wednesday and climbed 3.8 per cent as investors cheered the announcement of Dewa listing, the first of the 10 mega Dubai government owned companies to be listed on the Dubai Financial Market (DFM).

The benchmark index advanced 114 points, or 3.8 per cent to its highest level in more than three years as most stocks were trading in the black, including blue-chip developer Emaar Properties with a 7.78 per cent jump.

The DFM Company led the market rally with 14.87 per cent gains and its 80.36 million shares were traded on the exchange. GFH, Dubai Investments and Union Properties also supported the main index with healthy gains of 10.18 per cent, 9.52 per cent and 9.06 per cent, respectively.

Among the losers, Emirates NBD dropped 0.35 per cent to Dh13.95.

Wael Makarem, senior market strategist for Mena at Exness, said the Dubai stock market continues to climb as investors take into consideration the impact of the announced IPOs.

“The government’s intent to strengthen the local bourse was widely welcomed as the DFM missed such big events while other neighboring markets enjoyed new additions and were able to attract liquidity and investors,” Makarem said.

In Abu Dhabi, the index dropped 10.6 points, or 0.13 per cent, after reaching a record high in early trading. Emirates Telecommunications Group rose 1.46 per cent to Dh26.42 while Aldar and Dana climbed 1.18 per cent and 3.77 per cent, respectively. First Abu Dhabi Bank and Alphadhabi dropped one per cent each.

— muzaffarrizvi@khaleejtimed.com