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Dubai Rises as Volumes Cross 600m Mark; Abu Dhabi Dives

DUBAI — Dubai Financial Market’s General Index, or DFMGI, on Tuesday reached a nine-week closing high as low valuations draw in buyers ahead of a Dubai World debt offer, which is expected to be unveiled this month.

The DFMGI climbed 2.1 per cent to 1,758.17 points, its highest finish since January 12. The benchmark index has gained 10 per cent this month. Out of 30 stocks traded yesterday, 18 posted gains, while five remain unchanged and seven declined as trading volume improved to 601.66 million shares.

Investors welcomed the UAE’s Central Bank Governor Sultan bin Nasser Al Suwaidi comments on possible Dubai World’s debt restructuring deal and made heavy buying in key shares.

Emaar Properties rose 4.7 per cent to Dh3.80 and Dubai Financial Market advanced 2.8 per cent to Dh1.85.

Drake & Scull International PJSC, a Dubai-based construction company, advanced to a three-month high as it said it was considering an acquisition. Its shares rose 4.4 per cent to 0.94 fils, the highest close since December 14.

“The market is still attractive and so retail players are taking advantage of the upside potential,” said Chamel Fahmy, Beltone Financial regional senior sales trader.

“Dubai is trading at a 35 per cent discount to the MENA region.”

In property sector, Union Properties surged 13 per cent to 0.52 fils and Deyaar soared 8.7 per cent to 0.50 fils.

“Whenever you see the bluechips perform very well and confidence is up, investors will then shift towards the smaller names and so that’s why we’re seeing the likes of Union Properties and Deyaar do so well,” added Fahmy.

ADX Remains Bearish

Abu Dhabi Securities Exchange’s General Index, or ADXGI, fell for a second day, slipping 0.18 per cent to 2,861.10 points.

Out of 32 stocks traded on ADX, 19 posted gains, while five remain unchanged and eight declined as 110 million shares worth Dh238.35 million exchanged hands yesterday.

Emirates Telecommunications Corp, also known as Etisalat, was the main drag, declined two per cent to extend losses since hitting a dividend-driven five-month high on Sunday.

RAK Bank declined 5.04 per cent to Dh3.06 while Emirates Insurance dropped 5.75 per cent to Dh7.05.

On positive side, Waha Capital and Sorouh Real Estate rose 1.1 per cent and 0.11 per cent, respectively.

In terms of value, Aldar Properties, up 0.12 per cent at 4.14 per cent, remained a most active share on ADX as its Dh87.73 million shares changed. In terms of volume, Dana Gas, rose 3.41 per cent at 0.91 fils, remained on top as its 23.76 million shares were traded on the exchange.

In regional markets, Qatar’s DSM-20 Index advanced 1.7 per cent to 7,049.93 points, the highest since December 22. Saudi Arabia’s Tadawul All Share Index gained 0.5 per cent, Oman’s MSM-30 Index increased 0.2 per cent, while Bahrain’s measure was little changed. The Kuwait Stock Exchange Index slid 0.7 per cent.

· muzaffarrizvi@khaleejtimes.com