Dubai stock market hits ten month high

Dubai stock market hits ten month high
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Published January 17th, 2013 - 08:37 GMT via

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Around 102.55 million shares, altogether worth about Dh162.95 million were traded on the market
Around 102.55 million shares, altogether worth about Dh162.95 million were traded on the market
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The share market index of the Dubai Financial Market (DFM) closed near its highest level in more than 10 months as greater participation of foreign investors boosted market sentiments and lend credence to analysts’ belief that the bull run that began at the beginning of the year still has got some legs to it.

The market yesterday was driven by investors’ buying in real estate major Emaar’s shares, Tabreed and DFM. However, profit-taking in construction major Arabtec, Ajman Bank and Gulf Finance House’s stocks pared the index’s gains.

The DFM index yesterday closed 0.39 per cent higher at 1,741.31 after closing 0.07 per cent weaker on Tuesday. The market sentiment is being supported by strong fundamentals of the local blue-chip stocks and anticipation of robust fourth-quarter earnings as well as optimism surrounding the continued global economic recovery.

Market experts expect the current bull run to sustain on renewed buying interest of foreign as well as retain investors who see potential in an oversold market amid some attractive share valuations.

Overall, around 196.75 million shares cumulatively worth 218.9 million changed hands on the market. The volume and value of shares traded yesterday, however, was lower than Tuesday when the market traded 256.52 million shares, cumulatively worth about Dh276.19 million, as many as 9.74 million Emaar shares cumulatively valued at around Dh39.9 million were traded, its stock closing 0.25 per cent higher at Dh4.08. Tabreed’s shares also rose, gaining 3.87 per cent to close at Dh1.61.

Of the 28 company stocks traded yesterday, 8 rose, while 16 fell and 4 closed unchanged. The day’s top gainer was Emirates NBD, its shares closing 6.43 per cent higher at Dh3.31. Gulf Finance House was the day’s main loser, its stock closing 4.39 per cent lower at Dh0.479. Shares of Tabreed were the most traded by value while Gulf Finance House’ shares were the most traded by volume.

Abu Dhabi:

The Abu Dhabi Securities Exchange (ADX) general index rose fell 0.15 per cent yesterday on profit-taking by investors, mainly in real estate stocks such as Aldar properties and Sorouh Real Estate. The market index had gained for two straight days, Tuesday and Monday rising 0.28 per cent and 0.89 per cent, respectively, which gave evidence that it was in a period of consolidation ahead of a potential rally.

Yesterday, the decline came from investors’ selling shares in banking, real estate, energy stocks, but gains in telecommunication stocks pared the index’s further slide.

The market since the beginning of 2013 has been witness to a bull run, which took the index past 1,700 as global investors’ immediate fears on the U.S. going over the fiscal cliff were allayed. The ADX general index closed at 2,769.67 with its bullish sentiments intact.

The cumulative value of share transactions on the market yesterday fell below Dh163 million from about Dh178 million on Tuesday.

Telecommunications major etisalat’s stock, which has a high weightage on the index, closed 0.21 per cent higher yesterday to close at Dh9.42. The stock had gained 0.53 per cent on Tuesday. Around 102.55 million shares, altogether worth about Dh162.95 million were traded on the market. Of the 34 company stocks traded, 12 advanced, while 13 fell and 9 closed unchanged.

The stock of Aldar Properties fell 1.24 per cent to Dh1.59. Sorouh Real Estate’s shares, also fell, going down 1.88 per cent to close at Dh1.57. Any news on the potential merger of the two Abu Dhabi real estate majors is a major catalyst for the market.

The top gainer on the Abu Dhabi market yesterday was Green Crescent Insurance Company, its shares gaining 4.08 per cent to close at Dh0.51. Qatar Telecom was the top loser, its stock ending the day 5.41 per cent lower at Dh105. The shares of Sorouh were the most traded in terms of value as well as volume.

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