UAE stocks rally Tuesday
Shares of blue chips of bank, real estate and investment sectors rallied yesterday to help boost UAE’s benchmark stock indices as high liquidity, positive company earnings and record airport passenger numbers lured investors into the markets after two days of choppy trading.
Emaar Properties’ second quarter net profit rising 10 per cent compared to a year earlier signalled the continuing recovery of the real estate market. The company’s three-month net profit rose to Dh675 million, up from Dh614 million during the same period last year. And the Dubai airport passenger traffic touching 32.6 million, making it the busiest in the facility’s history, also buoyed market sentiments.
The DFM General Index rose 1.96 per cent to close at 2564.54 led by bluechip stocks such as Emaar, Emirates NBD and Air Arabia. Others to gain included Arabtec, Drake and Scull International and Tabreed.
In Abu Dhabi, the moderate rally was led by real estate and banking stocks. The ADX General Index closed 0.38 per cent higher to end at 3882.40.
Emaar, the biggest company by market value on the Dubai stock exchange, jumped 2.79 per cent to Dh5.90. The traded value of the company’s shares stood at Dh136.44 million, highest on the day. Emirates NBD, Dubai’s largest lender, surged 4.71 per cent to Dh5.34. Air Arabia, the region’s largest discount airline, was up 3.08 per cent to Dh1.34.
“The better than expected results from Emaar is one of the key drivers behind the rally with all divisions in Emaar performing strongly, particularly for property development where delivery of completed properties was very robust,” said Yong Wei Lee, head of Mena equities at Emirates NBD Asset management.
“This is further evidence that the real estate market in Dubai is recovering with fundamental strength.”
“In addition, reports of Dubai airport arrivals rising by 17 per cent year on year for the first half, becoming the second busiest airport in the world, supports the view that Dubai is on track to record strong economic growth for the year,” he added.
High liquidity is also bringing in investors, even after the strong gains over the past one month. Dubai saw its turnover soar to Dh790.06 million, up from Dh402.29.
“There is lots of liquidity coming to the market, which is sustaining the rally,” said Tariq Qaqish, head of asset management at Al Mal Capital. “besides that the momentum is strong and regardless of the valuations, investors are happy to take exposure to the UAE equity markets.
In the capital, Aldar Properties, trading 48.26 million shares, advanced 2.69 per cent to Dh2.67. Etisalat, UAE’s biggest telecom company, remained unchanged at Dh12.00. Among the other high volume stocks, Dana Gas rose 3.23 per cent, First Gulf Bank lost 0.30 per cent and Ras Al Khaimah Properties remained flat.