Dubai outperforms most Gulf bourses

Dubai Financial Market surges as investors cheer announcement to list Salik toll system on the exchange



An investor walks through the Dubai Financial Market. Dubai’s main share index surged 0.92 per cent or 29.15 points, to 3,170.13 points, hitting its highest level since March 2018. — Reuters file photo
An investor walks through the Dubai Financial Market. Dubai’s main share index surged 0.92 per cent or 29.15 points, to 3,170.13 points, hitting its highest level since March 2018. — Reuters file photo
by

Muzaffar Rizvi

Published: Sun 14 Nov 2021, 6:41 PM

Last updated: Sun 14 Nov 2021, 10:49 PM

Dubai’s stock market on Sunday opened the week in bullish mood as Dubai Financial Market drove the index to more than three-year high following an announcement from the government to list Salik toll system on the Dubai Financial Market.

The DFM Company drove the benchmark index, which rose 0.92 per cent, or 29.15 points, to 3,170.13 points, hitting its highest level since March 2018.

The DFM Company resumed gains driven by a bourse expansion plan as its stocks surged 14.87 per cent with 176.49 million shares traded on the exchange.

Emaar Development, which announced a 75 per cent surge in nine-month profit to Dh2.384 billion, climbed 3.73 per cent with 6.47 million shares exchanged hands. National International Holding Company and Deyaar rose 4.78 per cent and 1.69 per cent, respectively.

Among the losers, Union Properties plunged 9.74 per cent as investors traded its 303.28 million shares.

“The Dubai stock market rose today as new information emerged about the government’s plan to list state-owned companies on the DFM as Salik appears to be next on the list. Investors remain optimistic regarding the impact of the new IPOs on the market liquidity and attractiveness and eagerly await new announcements,” said Farah Mourad, senior market analyst at XTB Mena.

He said the introductions of a list of state-backed companies to the DFM could attract new capital to the market which could positively affect other listed stocks as well. “As such, the bullish trend could develop further as the government’s plans gain traction,” Mourad said.

Earlier this month, the emirate had announced plans to launch a Dh2 billion market-maker fund and initial public offerings of 10 state-backed companies as part of plans to boost activity on the local bourse. Since the announcement, the DFM has surged more than 80 per cent.

In Abu Dhabi, the main index rose 0.13 per cent to an all-time high of 8,296.19 points as telecoms and banking shares supported the market.

Emirates Telecommunications, or etisalat, rose 1.29 per cent with 354.82 million shares traded on the exchange. Fertiglobe and First Abu Dhabi Bank shares climbed 10 per cent and 0.63 per cent, respectively.

Bank of Sharjah led the losers with 7.19 per cent decline in share value to Dh0.594.

In regional markets, the Saudi benchmark index edged 0.1 per cent higher, extending gains for a second session.

Sahara International Petrochemical Co rose 2.4 per cent while Arabian Centres plunged 10 per cent following an announcement that its title deed on a piece of land in Riyadh has been cancelled by a court.

The Qatari index dropped 0.6 per cent, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar.

Outside the Gulf region, Egypt’s blue-chip index concluded 0.8 per cent higher. Commercial International Bank gained 1.1 per cent after the lender reported a rise in third-quarter profit.

— muzaffarrizvi@khaleejtimes.com


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