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DFM Rises; ADX Up 2pc

DUBAI - UAE shares on Sunday edged up as investors picked up select stocks after last week’s big routing.

Dubai’s benchmark index seesawed throughout the session before settling up for a second day to finish 1.08 per cent higher at 1,488.68, buoyed by banks, investment and property sectors.Abu Dhabi’s gauge rose 2.44 per cent to 2,188.68, snapping three days of losses. Both bourses got thumped last week on gloomy economic news that sent their respective benchmark indexes to fresh four-and-a-half year lows.

The bourses tracked gains in the Saudi market last Saturday, a rally in oil prices and support levels holding in both domestic and major global exchanges despite overall market weakness, helped lift stocks, said Matthew Wakeman, managing director of cash and equity linked trading at EFG-Hermes.

“It kept us away from the November lows and concern about where we go if we trade through these supports. Hopes are that upcoming news flow on the stimulus package will prove supportive.

Dubai’s Emirates NBD gained 2.66 per cent to Dh3.47, while the Dubai Islamic Bank added 5.03 per cent to Dh1.67.

Deyaar Development jumped 4.34 per cent to Dh0.48 after the company disclosed its fourth-quarter profit rose by a hefty 59 per cent to Dh343 million.

Aramex, the Middle East’s largest courier company which recently acquired Metrofile Middle East LLC for an undisclosed amount, gained 2.43 per cent to Dh0.84.

Arabtec Holding pared some of its nearly 30 per cent losses last week to inch up 0.93 per cent to Dh1.08. The country’s biggest construction firm which is building the world’s tallest tower in Dubai, was raised to “overweight” from “neutral” by HSBC Holdings Plc with a price target of Dh.240.

Union Properties added 1.75 per cent to Dh0.58. The company told the bourse its board of directors approved the plan to issue non-convertible bonds of up to Dh2.5 billion. Investors however, quickly took profits after Emaar Properties, the region’s biggest property company rose 4.37 per cent in mid-session. The stock closed flat at Dh1.87.

Trading, especially in Dubai, was again dominated by retail investors, accounting for the highly volatile session.

“When you have retailers dominating trade, this shows there is still lack of confidence,” said Chamel Fahmy of Beltone Financial Securities.

“Expected downturns in earnings have already been priced into the market, nobody is standing on solid ground, so it’s hard to expect a very strong rebound until there are clear indications that things are beginning to normalize.”

Leading advancers in Abu Dhabi were banks which edged up 2.44 per cent.

First Gulf Bank rose 6.78 per cent to Dh7.40, while Commercial Bank climbed 9.88 per cent to Dh1.89.

Sorouh Real Estate edged up 7.63 per cent to Dh2.63.

Investors are expected to carry on with short-term trading and be cautious “given what has happened recently with our markets, and ahead of corporate earnings which has yet to start in any meaningful way,” said Ali Khan, managing director of Arqaam Capital.

rocel@khaleejtimes.com