What crisis? Dubai markets at new hit five year high!
The Dubai Financial Market index, the best performer among 90 benchmarks tracked globally, jumped 3.57 per cent, or 131.7 points.
Click here to add Abu Dhabi’s Aldar Properties as an alert
Disable alert for Abu Dhabi’s Aldar Properties,
Click here to add Amer Khan as an alert
Disable alert for Amer Khan,
Click here to add Arabtec as an alert
Disable alert for Arabtec,
Click here to add Deyaar Development as an alert
Disable alert for Deyaar Development,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Reuters as an alert
Disable alert for Reuters,
Click here to add S&P as an alert
Disable alert for S&P,
Click here to add SHUAA Asset Management as an alert
Disable alert for SHUAA Asset Management,
Click here to add Shuaa Capital as an alert
Disable alert for Shuaa Capital
Dubai’s stock market, the world’s second best performing bourse in 2013, surged to a new five-year high to 3,819 points on Thursday.
The Dubai Financial Market index, the best performer among 90 benchmarks tracked globally, jumped 3.57 per cent, or 131.7 points, to its highest level since October 2008 as retail investors targeted mid- to small-cap companies ahead of fourth-quarter earnings.
The bourse crossed the 50 per cent retracement of its drop from a January 2008 peak, which lies at 3,807 points.
“Institutional money is either already in the market or waiting on the sidelines until there is something clear to bet on — this volatility is basically retail-driven,” Reuters quoted Amer Khan, fund manager, Shuaa Asset Management, as saying.
Small- and mid-cap stocks dominated trade. Shuaa Capital was up 11.71 per cent to Dh1.24, Deyaar Development surged 7.81 per cent to Dh1.38, Islamic Arab Insurance was up five per cent and Arabtec climbed 9.79 per cent to Dh4.15. Emirates NBD rose to the highest since 2008 by five per cent to Dh7.35. Abu Dhabi’s index gained 1.7 per cent.
Emaar Properties, which has the highest weighting on the index, rose 2.2 per cent to Dh8.02.
Early Thursday, Abu Dhabi’s Aldar Properties gained 4.3 per cent, leading trade on the UAE capital’s index. The measure advanced 1.68 per cent to 4,655 points, also reaching a fresh five-year high.
Dubai ended 2013 ranked as the second best performing equity benchmark globally after Venezuela, with Abu Dhabi’s index coming in third. Dubai’s index achieved a 107.6 per cent return for its investors on the year, while Abu Dhabi’s gain was 63 per cent.
Dubai’s stock market capitalisation almost doubled this year amid reignited investor interest in local shares in anticipation of an upgrade in its classification to “emerging markets” status and Dubai winning its bid to host the Expo 2020. At close on Thursday, the market cap rose to Dh283.12 billion, up 3.57 per cent.
Market analysts are of the view that with both S&P and MSCI confirming that the UAE would be upgraded to emerging market status in 2014, local stock markets are poised to get further boost from increased capital flows over the next five to six years leading up to 2020.
Deloitte Middle East’s first Equity Capital Markets Confidence Survey said the DFM and the Qatar Exchange are expected to be the most active GCC exchanges in 2014.
There is a strong pipeline of issuers looking to launch IPOs regionally as well as on international stock exchanges. Increases in trading volumes are driven in large part by foreign investors seeking a safe haven from socio-political turmoil in the wider Middle East region, which is positively affecting real estate and stock values in GCC countries, especially the UAE.
The UAE, the Arab world’s second largest economy, expected to have finished 2013 at 4.5 per cent growth is on track to pick up added momentum in 2014.
Analysts believe the Expo 2020 win by Dubai and the prospect of an upgrade to the coveted emerging market status will add new dynamism to the economy that is already on an upward trajectory. Huge non-oil sector investments, a buoyant trade and services sector, and a booming tourism industry are critical to this upswing.
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge
- Dubai: Real estate market to hit $50 billion in five years
- Now what? Should you pull out from the Dubai stock market?
- 4 years later, Qatar Petroleum to release first IPO since financial crisis
- Emerging markets hit highest note since March 2013
- Abu Dhabi foreign trade surges 37.5 per cent to AED102.8 billion in 2008