UAE markets up, Bitcoin crosses  $40,000 barrier

Dubai - Property, banking and financial sector shares offer support to benchmark indices in Abu Dhabi and Dubai markets

Muzaffar Rizvi

Published: Mon 14 Jun 2021, 8:40 PM

Last updated: Tue 15 Jun 2021, 3:36 PM

The UAE markets on Monday staged a strong rebounded amid optimism about quick economic recovery and bullish oil prices.

Dubai’s main share index rose 0.9 per cent to 2,868.02 points due to strong gains in property, banking and financial sector shares. Blue-chip developer Emaar Properties rose 0.9 per cent while Dubai Financial Markets and Emirates Emirates NBD Bank surged 5.21 per cent and 1.84 per cent, respectively.

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Emaar Properties led the best performing shares, rallying to Dh4.13, with the emirate’s largest lender Emirates NBD Bank rising to Dh13.80.

In Abu Dhabi, the stock index rose 0.51 per cent to 6,736.11 points due to gains in key scrips. First Abu Dhabi Bank shares rose 0.72 per cent while telecom giant etisalat and fuel retailer Adnoc Distribution up by 0.27 per cent and 0.23 per cent, respectively.

At Abu Dhabi Securities Exchange, the International Holding Company (IHC) continued to surge to Dh97 amid Dh414 million in transactions, with the country’s largest lender FAB closing favourably at Dh16.88. Etisalat also rose to Dh22.20 and Adnoc Distribution to Dh4.40.

A total of 5,283 deals were conducted in ADX worth around Dh1.426 billion over 321 million shares. At DFM, 3,522 deals were struck over 185 million shares worth Dh312 million.

From today, the emirate will limit entry to shopping centres, restaurants, cafes and other public places to those who have been vaccinated against Covid-19 or recently tested negative for the Coronavirus.

In other regional markets, Saudi and Qatar stocks also rose due to gains in banking and petrochemical sectors.

“GCC financial markets should remain in the positive territory thanks to the subduing economic impact of the pandemic and the economic revival,” Daniel Takieddine, market analyst at FXPrimus, said.

Bitcoin resumes rally

Meanwhile, Bitcoin crossed $40,000 barrier on Monday following tweets from Elon Musk, who said Tesla sold Bitcoin but may resume transactions using it.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter on Sunday.

Bitcoin rallied more than 12 per cent after that message, breaking above its 20-day moving average, and climbed further to hit $40,688. 17 at 8pm UAE time.

“Musk’s words caused bitcoin to surge,” said Simon Peters, market analyst at eToro.

— muzaffarrizvi@khaleejtimes.com