Dubai’s benchmark stock index rose to its highest closing level in almost four years while the Abu Dhabi market general index surged to its highest level since October 2008 on Sunday on the back of a rally in real estate and banking shares.
Upbeat investors lapped up attractively valued stocks on the two bourses as downside risks abated on improved global risk appetite.
The Dubai Financial Market (DFM) index jumped 2.45 per cent to close at 2,352.21, led by real estate major Emaar whose stock rose 3.47 per cent to close at Dh5.97.
Dubai Islamic Bank’s share price increased 4.1 per cent to Dh3.30 at close. The market’s gain brought its surge this quarter to 29 per cent.
In Abu Dhabi, the market index closed at 3,564.20, 1.42 per cent higher, led by buying interest in Aldar Properties and Sorouh Real Estate shares. Aldar’s shares jumped 14.71 per cent to Dh1.95 while Sorouh’s gained 14.95 per cent, closing at Dh2.46. Sorouh’s trading volumes surged to almost six times the three-month daily average while Aldar’s stock climbed the most since September 2005.
“Strong first quarter corporate earnings and renewed global investor confidence are the key factors sustaining the ongoing rally on the local markets,” Marwan Shurrab, vice-president at Dubai-based Gulfmena Investments, told Gulf News.
Stock market sentiments across the US, Europe and Asia have turned positive on indications the United States, the world’s largest economy, is on a sustainable growth path after nearly five years of low growth and recession brought on largely by the global financial crisis.
On Friday, the Dow and S&P 500 closed at new all-time highs as the market posted gains for a fourth straight week. Good news about the nation’s steady economic recovery and better-than-expected consumer confidence numbers bolstered the rally. The US Federal Reserve’s continued commitment to low interest rates is also giving a big push to the ongoing global market rally.