Dubai DFM jumps 1.2% with stronger trade values

The Dubai Financial Marke index jumped 1.22% on Monday, the highest rise in the index in about a month, as traded values rose following several sessions of weak liquidity and sideways movements.

By Sarah Diaa Staff Reporter

Dubai: The Dubai Financial Market (DFM) index jumped 1.22 per cent on Monday, the highest rise in the index in about a month, as traded values rose following several sessions of weak liquidity and sideways movements.

The index reached 3,424.69 as most stocks rose, including blue chips such as Emaar, which gained 1.94 per cent and was the second most actively traded stock in terms of value on the DFM. Powerhouse Dubai Islamic Bank also gained 1.07 per cent, while Damac share prices rose 7.48 per cent.

It was GFH Financial House, however, that continued to account for most of the liquidity in the market, with share prices jumping 6.28 per cent to reach Dh2.2. GFH shares alone accounted for 48 per cent (Dh211.3 million) of the total traded values on the DFM.“There’s a lot of speculation on some of the stocks in Dubai and that’s driving liquidity. Besides that, there are serious investors that are interested in companies such as Emaar that have future news to hit the buyer,” said Tariq Qaqish, managing director of asset management at MenaCorp.

He added that valuations are attractive on the Dubai bourse, with valuations there being about 20 per cent lower than those of emerging markets.Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index slid 0.66 per cent to reach 4,414.45.

The top gainer on the Abu Dhabi bourse was Dana Gas, whose share prices climbed 6.06 per cent, with the stock being the most actively traded in terms of value. Abu Dhabi Financial Group has a stake in both Dana Gas and GFH Financial House. A fund called Goldilocks, part of ADFG, bought a 5 per cent stake in Dana Gas in late June.

Asked what could drive market performance going forward, Qaqish said, “I don’t think second-quarter numbers will show any surprises. Having companies report solid numbers will give a boost to investors because sentiment is weak, confidence is weak, so any positive news in terms of earnings, [or] oil prices rising should help the market go up. Of course, the Qatari issue will also drive volatility going forward.”

On Monday, the UAE, Saudi Arabia, Bahrain, and Egypt agreed to extend by 48 hours a deadline for Doha to comply with a list of demands. The demands by the four countries included curbing ties with Iran, severing all ties to terrorist groups, and terminating Turkish military presence in Qatar, among others.