UAE, GCC markets gain on Sunday; market cap up by Dh165 billion

The UAE and other Gulf markets opened the week on a higher note as the ease of restrictions on the movement of people and partial opening of certain sectors lifted investor sentiments.

Dubai Financial Market jumped 3.5 per cent to 1,956 points, led by gains in Emaar Properties and its subsidiaries Emaar Malls and Emaar Development. Insurance firms such as Salama and Dar Al Takaful also helped the index, rising by 15 per cent and 14 per cent, respectively.

With the advent of the holy month of Ramadan, Dubai eased restrictions on the movement of people and also allowed shopping malls, commercial centres and salons to open partially.

In Abu Dhabi, the index jumped 2.93 per cent to 4,181 points on the back of International Holdings Co, First Abu Dhabi bank and Dana Gas.

On Sunday, the market capitalisation of GCC markets rose by a combined $44.9 billion (Dh165 billion). Abu Dhabi saw its market cap rise by $5.5 billion, DFM by $3.4 billion and Saudi Arabia’s Tadawul saw its value rise by $34.5 billion.

Tadawul jumped 3.5 per cent to 6,838 points on Sunday, helped by gains in Saptco, Amana Insurance, Al Aseel and Al Markez. The Kingdom also partially lifted the curfew in all regions of the Kingdom from 9am to 5pm, starting Sunday through Wednesday, while keeping a 24-hour curfew in the holy city of Makkah and in previously isolated neighbourhoods.

In addition to ease of curfew in the region, recovery in oil prices on Friday also gave a fillip to the regional bourses. WTI crude was up 2.7 per cent or $0.44 a barrel to $16.94 while Brent rose 0.52 per cent to $21.44 on the weekend.

Vijay Valecha, chief investment officer at Century Financial, said partial opening of shopping malls, easing restrictions on movement and the UAE carrying out over one million Covid-19 tests instilled confidence among consumers and investors.

“This move is certainly welcomed by the markets as it will result in extra spending from the consumers and help revive the economies. Besides, the recovery in oil prices towards the end of last week also gave a boost to the regional bourses. Brent crude futures recovered from the low of $15.98 to end the week at $21.4,” said Valecha.

waheedabbas@khaleejtimes.com