Dubai bourse hits near 4-year high; Saudi eases

In Abu Dhabi, the index gained one per cent, to an-all-time high of 8,352 points, with the country’s largest lender First Abu Dhabi Bank (FAB) rising 2.4 per cent



Dubai’s main share index gained one per cent, buoyed by a 14.8 per cent surge in Dubai Financial Market, gaining for a 10th session in 12. — File photo
Dubai’s main share index gained one per cent, buoyed by a 14.8 per cent surge in Dubai Financial Market, gaining for a 10th session in 12. — File photo
by

Muzaffar Rizvi

Published: Tue 16 Nov 2021, 8:39 PM

The Dubai Financial Market on Tuesday continued its rally as investors cheered positive developments and encouraging corporate results. Dubai stocks ended at nearly four-year high as a slew of upbeat corporate earnings boosted the index.

Dubai’s main share index gained one per cent, buoyed by a 14.8 per cent surge in Dubai Financial Market, gaining for a 10th session in 12.

Earlier this month, the emirate announced plans to launch a Dh2 billion ($545 million) market-maker fund and initial public offerings of 10 state-backed companies as part of plans to boost activity on the local bourse. Initially, Dewa and Salik road toll system will be listed on the Dubai Financial Market to attract investors as a part of strategy to boost liquidity in the market.

Emaar Properties climbed 1.6 per cent, a day after the developer’s founder said plans to sell 50 per cent of Namshi app to foreign and local investors.

On Sunday, Emaar reported quarterly net profit of Dh1.02 billion, up from Dh359 million year ago.

Among other gainers, Deyaar Development jumped 15 per cent and Amlak Finance soared 14.8 per cent.

Farah Mourad, senior market analyst of XTB Mena, said the Dubai stock market opened positively as investors expect additional performance and liquidity ahead of the upcoming IPOs announced by the government and as the real estate sector continues to recover.

“The market could go into price corrections after the successive rises,” she said.

ADX at all-time high

In Abu Dhabi, the index gained one per cent, to an-all-time high of 8,352 points, with the country’s largest lender First Abu Dhabi Bank (FAB) rising 2.4 per cent.

Sanad, the global aerospace engineering and leasing solutions company wholly-owned by Mubadala, has secured a new $100 million evergreen revolving credit facility with FAB.

In regional markets, Saudi Arabia’s benchmark index eased 0.1 per cent, hit by a 3.3 per cent fall in National Industrialization Company and a 0.1 per cent decrease in Al Rajhi Bank.

"The Saudi stock market was in negative territory as it failed to surpass its latest peak. Investors moved securing their gains while the stagnating oil prices remove important support," Mourad said, adding that the market could see limited price corrections thanks to strong fundamentals.

Egypt’s blue-chip index declined 0.7 per cent, extending losses from the previous session.

“Investors move to secure their gains while oil stagnates, and inflation worries return,” said Mourad.

— muzaffarrizvi@khaleejtimes.com


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