High Oil Prices and Surge in 
Air Arabia, Emaar Lift DFM

Air Arabia climbed by 5 per cent to Dh1.05 as investors speculated on its second quarter earnings. Index heavyweight Emaar Properties rose by 2.6 per cent to Dh31.4

The Dubai Financial Market benchmark index opened strongly, but profit-taking trimmed gains towards the close to 0.8 per cent at 1,919.35. The index was 5.5 per cent higher from last week.

The main index of the Abu Dhabi Securities Exchange inched up 0.1 per cent to 2,844.46 to gain 1.6 per cent from the previous trading week.

Investors seemed to have regained their appetite for risk, with shares traded in both bourses reaching Dh1.311 billion, Dubai accounted for
 Dh918.964 million.

“The increase in volume implies that there is significant cash on the sidelines waiting to be put to work as and when news flow dictates,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes. Helping to improve the mood was the rise in oil prices on Thursday, reaching its highest level this year at $76 a barrel in mid-day trading in London before settling at $75.93 a barrel, up 42 cents
 from Wednesday.

New York’s main contract, light sweet crude for September, gained 32 cents to $72.29 a barrel.

“Market sentiment is generally improving and more constructive. We can expect decent upside next week, especially if economic data coming out in major markets are positive. Investors should feel more comfortable wading back into the markets,” said Chamel Fahmy, senior regional sales trader at Beltone Financial Securities Brokerage. Asian stocks rose on Thursday, while US stocks are expected to open flat to lower as investors await the weekly reading on jobless claims. The number of people filing for benefits is expected to have fallen slightly from
 the week before.

“There is pressure on UAE stocks, but so far, both markets have shown their resilience despite negative economic indicators in the US. This is a comforting sign that equities here could creep up in the next couple of weeks - barring any major bad news,” said Haissam Arabi, fund manager at Gulfmena Alternative Investments.

Bucking the trend, Ajman Bank fell by 2.6 per cent to Dh1.13 after the Islamic bank posted a second-quarter loss of Dh13.6 million. Abu Dhabi shares were paced by investment fund Aabar Investments, edging up by 5.1 per cent to Dh2.66. Invest Bank surged by 8.7 per cent to Dh1.75.

Dana Gas rose by 5.9 per cent to Dh1.22, extending recent gains from its announcement on August 1 of two new gas finds in Egypt with reserves totalling an estimated 76 billion cubic feet. The finds were at the Sharabas-1 and Sama-1 wells in the Nile Delta region but did not give a specific date for the start of commercial production from the wells.

The emirate’s biggest property company, Aldar Properties added 1.7 per cent at Dh4.15, while Sorouh Real Estate climbed by 2 per cent to Dh3.0.


rocel@khaleejtimes.com