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Late Trade Buys Lift DFM to 6-week High

DUBAI — Late-trade buying pulled up shares in Dubai to a six-week high on Wednesday, but property stocks weighed down the Abu Dhabi index.

Investors snapped up select stocks towards the end of the trading session to lift the Dubai Financial Market benchmark index by 1.3 per cent to 1,903.40. It was the index’s best finish since June 24 when it ended at 1,907.61. The Abu Dhabi Securities Exchange main index lost early gains to end 0.8 per cent lower 
at 2,841.16.

Trading remained thin in both bourses, with the total value of shares traded in Dubai hitting Dh406.6 million, more than 50 per cent lower than the 50-day average of Dh809.5 million. In Abu Dhabi, total traded shares were at Dh283.4 million which is lower compared to the 50-day average of Dh365.3 million.

Dubai index heavyweight Emaar Properties led gains in property and construction-related stocks, rising by 3.7 per cent to Dh3.06. Arabtec Holding, the country’s biggest construction company, added 2.8 per cent at Dh2.91.

“Markets recovered yesterday’s loses following stable markets overnight. Yesterday’s profit taking looked overdone and that proved to be the case in Dubai today,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes.

Deyaar Development also helped Dubai’s late trade rally, climbing by 3.9 per cent to Dh0.79. Union Properties edged up by 2.8 per cent to Dh1.10.

Hesham Bakry, institutional sales manager at Al Futtaim HC Securities said it is unlikely that markets will sustain recent gains as volumes continue to be lacklustre.

“The markets are still vulnerable, it is difficult to say if sustained rallies will resume because there are not enough strong catalysts after the earnings results. Investors will be watching the behaviour of global markets and will look into economic indicators in the Gulf to determine the markets’ direction.”

With the summer lull and the approaching Ramadan, trading will move sideways for the next month, with some stock specific “outperformance” along the way, said Wakeman.

Investors in Abu Dhabi took profits from the real estate sector, with top-ranked property company Aldar Properties losing 2.4 per cent at Dh4.12. The emirate’s second biggest property company Sorouh Real Estate, declined by 2.9 per cent to Dh3.

The other big losers are the Abu Dhabi National Energy Co. or TAQA whose shares dropped by 4 per cent to Dh2.57. Taqa said on Tuesday it bought a 15 per cent interest in North Sea natural-gas assets from the L11b Group, which includes Chevron Exploration and Production Netherlands BV, DSM Energie Holding BV, and EBN. Aabar Investments which recently bought a stake in Virgin Galactic, shed 3.1 per cent at Dh2.57. The National Bank of Abu Dhabi inched down by 1.1 per cent to Dh13.65. — rocel@khaleejtimes.com