Dubai rises ahead of Dewa IPO listing today

The UAE stocks on Monday sustained an upward trend as the real estate, banking and aviation shares supported the market.

Dubai’s main index climbed 1.3 per cent, or 46.07 points, to 3,587.68 points ahead of possible listing of state utility Dubai Electricity and Water Authority’s initial public offering on the exchange.

The markets players have high expectations for Dewa IPO, which is expected to start trading on the exchange on Tuesday (April 12, 2022) after raising Dh22.32 billion ($6.1 billion) in the Gulf’s biggest IPO since Saudi Aramco’s record deal in 2019.

Wael Makarem, senior market strategist for Men region at Exness, said the Dubai stock market continued its rise as investors expected the launch of Dewa trading.

“The launch could reinvigorate trading volumes as demand for the stock is still high. In addition, the Emirate’s economy is seeing strong growth in particular in the non-oil sectors,” Makarem told Khaleej Times on Monday.

Dubai’s main share index posted its best day in two weeks as Air Arabia drove the gains and ended up 8.98 per cent with 32.62 million shares traded on the exchange. In real estate, Emaar surged 1.65 per cent and Deyaar soared 3.19 per cent.

Emirates NBD and Dubai Islamic Bank led the banking sector with 1.37 per cent and 0.48 per cent gains, respectively.

In Abu Dhabi, main index climbed 0.7 per cent, or 71 points, to 10,166.6 points as the property and banking shares rose. Aldar shares surged 3.4 per cent while Abu Dhabi Commercial Bank and First Abu Dhabi Bank up 0.56 per cent and 0.17 per cent, respectively.

International Holding Company (IHC) stocks registered an increase of 2.58 per cent. The Abu Dhabi-based conglomerate announced on Friday to invest Dh7.3 billion in Indian multinational conglomerate Adani Group’s green portfolio companies listed on the Bombay Stock Exchange and National Stock Exchange.

Makarem said the Abu Dhabi stock market rose as investors take into account the strong local economic fundamentals as the Emirate and the UAE as a whole continue to grow firmly.

“The market could also record more increases if oil prices stabilise and return to the upside,” he said.

— muzaffarrizvi@khaleejtimes.com