Stocks in Dubai and Abu Dhabi continued to rise, with their benchmark measures gaining for the third straight day yesterday.
The Dubai Financial Market General Index climbed 0.71 per cent to close at 2338.07. Arabtec, UAE’s biggest construction company, was the highest traded stock of the day, trading Dh244.02 million.
It was the biggest gainer, surging 7.41 per cent to Dh2.03.
The company announced its shares are trading ex-rights from Wednesday. “The ex-right I think is what may have triggered the retail investors to jump in as they believed that the adjusted price is attractive, which to me is not the case” said Tareq Qaqish, fund manager and head of asset management at Al Mal Capital, Dubai.
“However, so far I haven’t heard anything but may be, we might hear more positive news on the company going forward looking at what’s happening in the construction sector and the recent announcement from Abu Dhabi.”
Other stocks that were winners on DGM included Emaar Properties, up 0.34 per cent, Dubai Financial Market, adding 2.04 per cent, Emirates NBD advancing 1.65 per cent and Deyaar Development gaining 2.44 per cent to Dh0.420.
Banking stocks pushed the Abu Dhabi Securities Index up 1.15 per cent to end at 3529.33.
First Gulf Bank, the third highest stock in traded value yesterday, rose 1.73 per cent to Dh14.70. Abu Dhabi Commercial Bank advanced 1.83 per cent to Dh5; National Bank of Abu Dhabi gained 1.69 per cent to Dh12; Union National Bank climbed 2.50 per cent to Dh4.51 and Commercial Bank International jumped 14.49 per cent to Dh1.58.
“FGB had fallen recently and so it’s a catch up,” said Qaqish. “But in general, the banks are looking positive and definitely will be affected by the positive news that is coming either from the liquidity side, and possible margin improvements.”