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DFM hits one-week high

The share prices on Dubai stock market sustained an upward trend in low trade on Sunday.

The benchmark index rose to the highest level in more than a week as real estate and banking shares climbed on positive developments in global markets.

The analysts expect that the index is likely to stay in positive columns ahead of second-quarter earnings, however trading volumes will remain muted during the holy month of Ramadan, starting next week.

The Dubai Financial Market’s General Index climbed 0.77 per cent to 1,502.54 points, the highest since July 5. Trading volumes stood firm at 85.71 million.

“The global lead was positive over the weekend, which would explain some of the modest increase today. Volume has been relatively firm for the last few days, compared to the weak summer liquidity for the last couple of years,” Mashreqbank portfolio manager Ibrahim Masood told Khaleej Times.

Emaar shares rose to the highest since May 2 as it received nine-time more offers for its $500 million sukuk last week. The property developer shares gained 1.61 per cent to Dh3.15. The shares have climbed 23 per cent this year.

Union Properties, up 1.56 per cent, also supported the main index.

“Emaar’s sukuk was always likely to be taken well by the market. The current strength in Emaar over the past few sessions is possibly on the expectation of good quarterly results, on the back of good performance of Dubai-based assets of the company,” Masood said.

In banking sector, Emirates NBD climbed the most in more than two weeks. Its shares advanced 2.66 per cent to Dh2.70. Shuaa Capital rose 2.54 per cent to 0.65 fils.

“There is not a lot of local news flow pending quarterly results, hence the global lead tends to play an important role in providing some short term direction,” Masood said.

ADX falls

Abu Dhabi’s ADX General Index fell 0.2 per cent to 2,460.74 points, closing lower for a third session in five. Banking shares led the decline on the index.

National Bank of Abu Dhabi and Abu Dhabi Islamic Bank fell 0.4 per cent and 0.3 per cent, respectively.

“Overall the market in Dubai remains attractive; sectors like telecoms [du] and property [Emaar] have done well recently and are likely to perform well if quarterly results are as expected. However it is possible that volumes may drop a bit during Ramadan,” Masood said.

In regional markets, Oman’s MSM30 Index advanced 0.4 per cent and Doha benchmark index ended flat at 8,283.13 points. Kuwait’s benchmark fell 0.1 per cent to 5,854.99 points, Saudi Arabia’s Tadawul All Share Index retreated 0.3 per cent and Bahrain’s measure fell 0.1 per cent.

— muzaffarrizvi@khaleejtimes.com