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Shares Extend Winning Streak

DUBAI — UAE shares extended their winning streak to a fourth day on Tuesday, tracking Asian markets which climbed to their best levels in a year, and with crude oil prices holding above $69 a barrel encouraging investors to snap up blue chips.

Deyaar Development, one of the most actively traded stocks in Dubai, surged by 8.2 per cent to Dh0.79 after announcing it will double the size of properties that it will manage in five years. Adding the most points to the Abu Dhabi bourse was the Abu Dhabi Commercial Bank, climbing by 4.5 per cent to Dh2.10 after being named as Morgan Stanley’s top pick among banks in the emirate.

The benchmark index of the Dubai Financial Market added 1.3 per cent to 1,996.01, bringing the index closer anew to the psychologically-important 2000 level which it hit last June 4 when the index finished at 2,025.56. The main index of the Abu Dhabi Securities Exchange gained a marginal 0.7 per cent to 2,977.24. Volumes were concentated in Dubai with Dh1.1 billion worth of shares changing hands, while traded Abu Dhabi shares were 
worth Dh295 million.

“As global equities rise, investors are also regaining their bullishness, Dubai will be trying to break through the 2000 mark again and investors are going to push blue chips higher to be able to achieve that,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.

Markets are seen to be very volatile throughout the month as investors attempt to break resistance levels and confirm if recent rallies, spurred by expectations of global economic turnaround, still has traction.

“People are trying to predict the end of the liquidity crunch and recession, some investors are starting to take positions before the Ramadan ends as they are expecting another wave of rally, especially when there is more certainty that economies worldwide are gaining strength again,” said Shurrab.

Since March, global stocks have been rebounding on better-than-expected earnings and positive manufacturing data, leading investors to believe major economies are priming up for a sharp rebound. However, the weakness in US job markets have reined in gains as investors wait for firmer signs of a recovery in the world’s
 largest economy.

Dubai index mover Emaar Properties, also the Middle East’s biggest property developer, closed flat at Dh3.80 after declining in mid-session by as much as 2.4 per cent. Emaar Economic City, a subsidiary of Emaar, cancelled a 1.4 billion-riyal or $370 million contract with the Saudi Bin
 Laden Group.

“ Emaar has rallied by 65 per cent in nearly two months and was due for a correction, investors want to slow down and take some profits,
” said Shurrab.

Banks helped pushed Dubai higher, led by Emirates NBD. The country’s biggest bank by assets, edged up by 2.5 per cent to Dh3.69. The Dubai Islamic Bank added 2.6 per cent to Dh3.13.