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DFM index hits nine-week high

DUBAI — Dubai Financial Market index climbed to a nine-week high yesterday as the market traded 262 million shares indicating the return of investors to the market.

The DFM index gained 2.43 per cent to 453 points yesterday. “The index has gained about 14 per cent from its lowest level to the current level over a period of two months. The gains have been gradual and has factored in the volatility.

There is a general consensus that the losses have been far in excess of the earnings potential,” said P. Krishnamurthy, CEO of Financial Services Division of Al Rostamani Group.

The Abu Dhabi index gained 0.25 per cent to 3,535.8 as the national benchmark, NBAD General Index gained 0.92 per cent to 11,828.

DFM brokers said yesterday that there has been a substantial increase in the number of trades, volumes and turnover on the market. “The day-traders and speculators are back. Expectations are high on the third quarter results as many investors feel that the balance sheets of companies are stronger after the losses on portfolio holdings during the previous two quarters have been taken out,” said a fund manager. The UAE market traded more than 290 million shares worth Dh2.4 billion yesterday. DFM traded a huge turnover of Dh2.27 million. Real estate major Emaar Properties gained 3.4 per cent to Dh13.70. Emaar counter traded 105 million shares worth Dh1.4 billion. “The Market currently trading at about 14 times at its estimated 06 earnings, companies like Emaar are trading far below its potential,” said an analyst. Recently, Shuaa Capital assigned a fair value of Dh18.74 on Emaar with a 50 per cent upside potential.