DFM up 0.5% on strong Emaar interest despite low trade volumes
Published: 16:51 May 9, 2017
Dubai: Strong interest in Emaar Properties made up for otherwise dull trade volumes on the Dubai Financial Market (DFM), with the benchmark gaining 0.5 per cent by the end of trade yesterday.
The DFM General Index closed 0.49 per cent higher at 3,408.44 after seeing just Dh260 million in total traded value, down from the Dh300-500 million daily average seen a few weeks ago.
Emaar Properties, which closed 1.09 per cent higher at Dh7.40, supported the broader market and emerged as the second-most actively traded stock on the bourse.
Gulf Finance House closed flat at Dh2.30 but accounted for 23 per cent of total traded value on the exchange.
Arabtec shed 1 per cent to close at Dh0.751 ahead of a rights issue while Drake and Scull closed less than a per cent higher to close at Dh0.403.
“The word in the market is that [the] stock will continue its move to the upside and target Dh0.50,” said Hisham Khairy, head of Institutional Trading at Menacorp, said in a note before trading on Tuesday.
Aldar surged after posting better-than-expected results.
“Better numbers from Aldar and the DFM are expected to affect performance, especially [in] Aldar [which] has been seeing lot of foreign buying lately,” Khairy said. “The stock will reverse the downtrend if it breaks [above] Dh2.25.”
Aldar Properties gained 1.83 per cent to close at Dh2.23, while the DFM stock closed 1.7 per cent higher at Dh1.17.
The Abu Dhabi Securities Exchange index ended the day 0.14 per cent higher at 4,584.65.
Abu Dhabi Commercial Bank gained 1.53 per cent to close at Dh7.30 while Sharjah Islamic Bank was up 4.38 per cent higher to Dh1.43.
Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index closed 0.78 per cent higher at 6,918.38 while the Qatar Exchange index gained 0.14 per cent to 9,865.78.
The Kuwait Stock Exchange index closed 0.43 per cent lower at 6,598.97 while the Bahrain Stock Exchange index shed 0.2 per cent to close at 1,322.08.
Trading period for Arabtec’s rights issue
The Dubai Financial Market (DFM) said that the Arabtec Holding rights issue will be open for trade on the exchange from Monday, May 15, up to May 21.
Arabtec is planning a rights issue that will raise the company’s paid-up capital to Dh6.1 billion, up from the current Dh4.6 billion.
Arabtec’s largest shareholder, Aabar Investments, will subscribe to its full entitlement under the rights offering and any remaining unsubscribed shares.