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UAE Shares Advance for Second Day

DUBAI - UAE shares advanced for a second day on Tuesday as investors snapped up select stocks ahead of the last trading day for the year.

The Dubai Financial Market Index rose more than 2 per cent in early trade but late-trade profit-taking pared gains to 0.4 per cent at 1,639.34 to bring its two-day gains to 3.3 per cent.

In Abu Dhabi, the Abu Dhabi Securities Exchange Index added 1.6 per cent to 2,555.49.

“Investors temporarily set aside gloom and doom news. They have already discounted the grim economic forecasts and focused on prospects of individual companies,” said Vyas Jayabhanu of Al Dhafra Financial Brokerage.

With most issues hammered in recent months on a barrage of gloomy economic outlooks, “it’s not surprising that a rebound is taking place, it was bound to happen,” said Jayabhanu.

Dubai’s index has plummeted 72 per cent this year, while Abu Dhabi’s gauge plunged nearly 50 per cent.

Arabtec Holding which is building the world’s tallest structure in Dubai, rose 2.6 per cent in mid-session before giving back some of its gains to end up 1.1 per cent to Dh 4.53.

Shares in the company rose three days in a row as investors hurried to qualify for the company’s bonus shares.

Among banks, Emirates NBD gained 4.7 per cent to Dh2.91.

Bucking the trend, index heavyweight Emaar Properties, the region’s largest property developer shed 0.4 per cent to Dh2.33.

Year-end window-dressing is boosting both markets as fund managers hurrying to spruce up portfolios ahead of the New Year break.

“The markets are still largely driven by retail investors, we are seeing some foreign institutions stepping in but not as aggressive as we would have wanted,” said Chamel Sahmy of Beltone Financial Securities. “The laid back stance of foreign fund managers is not surprising though. Many of them just wanted to maximise short-term trading opportunities.”

Banking stocks buoyed the Abu Dhabi bourse, along with property stocks.

The Abu Dhabi Commercial Bank soared 9.5 per cent to Dh1.62, while Union National Bank surged 9.7 per cent to Dh2.02.

Dana Gas PJSC, the Middle East’s first and largest regional private sector gas company, rose 5.3 per cent to Dh0.61 after the company disclosed it had found a significant gas and condensate discovery at its El Basant-2 well in the Nile Delta concession in Egypt.

“If it’s a significant gas find, it will be positive for the company’s long-term revenue schedule. Fuel demand is down right now, but the energy sector is a basic infrastructure tool. Dana Gas in is line for growth when economic conditions improve said,” Jayabhanu.

· rocel@khaleejtimes.com