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UAE stocks stage strong rally, Emaar up 5.6pc

DUBAI — Shares in the UAE markets bounced back yesterday to make a strong rally after a six-day losing streak in Dubai and a similar downward mood in Abu Dhabi for the past eight trading sessions.

Led by the Middle East's biggest real estate developer by market value, Emaar Properties, the Dubai Financial Market (DFM) General Index jumped by 179.39 points, or 4.5 per cent, to close at 4,147.48. There were no losers on the DFM.

The Abu Dhabi Securities Market (ADSM) Index gained 83.25 points, or 2.5 per cent, to 3,411.11. All sectors posted increases, with the consumer index leading at 4.9 per cent to 1,343.25 and the construction index having the smallest gain at 1.39 per cent to 4,142.52.

Analysts say investors are getting back after making a lot of selling since the last two weeks of July which prompted the fall in stock prices. The markets were mainly affected by the recent fall in global stocks due to defaults in mortgage payments in the US.

Emaar Properties, which on Wednesday saw its price fall below Dh10 after over two years as it lost 3.46 per cent, recovered with a gain of 5.64 per cent to Dh10.30. The property developer and manager for companies in and outside Kuwait, Al Mazaya Holding Co., topped DFM with a jump of 11.53 per cent to Dh7.25, followed by Dubai Islamic Bank with a rise of 8.42 per cent to Dh9.52.

Amlak Finance, the Middle East's leading home financier, increased 7.53 per cent to Dh3.14 while DFM Co., the only publicly traded stock exchange in the region, gained 7.51 per cent to Dh2.86, and Dubai Islamic Insurance rose 7.12 per cent to Dh23.30.

Abu Dhabi National Energy Co., which has agreed to buy for $540 million the Canadian exploration and production unit of Pioneer Natural Resources, gained 4.21 per cent to Dh2.72.

Al Buhaira National Insurance Co. topped ADSM with a rise of 10 per cent to Dh8.58, followed by Al Wathba Insurance Co. with an advance of 9.63 per cent to Dh4.44.

Sharjah Insurance Co. and Abu Dhabi National Takaful Co. climbed over 9 per cent each to Dh6.35 and Dh4.37 respectively.

ADSM only had five losers, with Oman and Emirates Investment Holding Co. having the biggest fall at 6.62 per cent to Dh18.35. Bank of Sharjah slipped 3 per cent to Dh2.31 while Finance House declined 2.74 per cent to Dh7.10.